How Cameras Module To Break Limited Market

- Aug 01, 2018-

Camera module market two level differentiation is obvious, like head module factory how to break the bureau?

Listen to the trend of the electronics industry and know the semiconductor industry first.

After a long shuffle and centralization of smartphones, the division between the two levels is grim, and this is evident in the camera module market.

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Throughout the current development of the terminal market, the market share of the four major domestic mobile phone brands continues to climb, but the second and third line brands do not seem so lucky.

From the point of view of supply relations, the relationship between the terminal market and the supply chain is very close. Once the terminal market is centralized, the trend of supply chain centralization will also become a necessity.

Based on this, in the terminal market, the trend of centralization is also reflected in the camera module market. At the same time, the larger the larger, the smaller the smaller the camera module market is the true portrayal.

Camera module market two level differentiation is obvious, like head module factory how to break the bureau?

Camera module manufacturers increased competition, double dividend decline

Due to the rise of the dual camera market, the real demand for cameras has also increased in the past, based on this, many camera module manufacturers actively expanded production last year.

But this year, camera module manufacturers are not as good as last year. This year, the entire camera module market is not only faced with the current situation of competition, but also faces the phenomenon of double slide.

In fact, this phenomenon of intensified competition is not limited to the second and third-line camera module market, the first-line camera module market competition is also fierce.

So what is the cause of this phenomenon?

In fact, this phenomenon is related to several factors. First, from the whole mobile phone market environment, the Chinese smartphone market has already said goodbye to the peak and began to enter the decline channel. On the other hand, although the market of the top four terminal manufacturers in China is expanding, the market of the two or three line brand is not as good as it is, and the market competition of the two or three line camera module is aggravated.

It is a common law in the business environment, and the expansion of the camera module manufacturer has also played a certain role in boosting the market competition. In the big background of the high pixel and the future of the optical market, a large number of expansion of the whole camera module market has also been ushered in recent years, and this expansion is another important reason for the intensification of market competition this year.

If the market share of the top four brands continues to climb, and the second and third line brands are not as good as expected, then where is the competitive pressure from the first line camera module?

The competition of front-line camera modules is also tied to expansion. Driven by high pixel drive, the front-line camera module manufacturers continued to expand last year.

However, the competition pressure of the first line module manufacturers may be related to the brand customers. From the whole terminal market this year, the technology innovation has been full of the whole mobile terminal market. The positioning of the market, shipments, revenues and net profits are all linked.

It is worth mentioning that at present, the entire camera module market is also facing a situation of double profit decline. The author recently learned from the supply chain that, with the improvement of the algorithm, the way the terminal manufacturers buy cameras is somewhat different from the past, and this situation makes the module's double profit margins also decline.

How to break the camera module factory?

For the whole camera module manufacturer, they are facing the situation that the market competition is intensifying and the situation of the decline in gross interest rate. So where are their breakthroughs?

This year, there is a clear phenomenon in which a large number of first line head module manufacturers have invested a lot of new business, which not only includes the 3D structure light module, the three camera module business, but also the screen fingerprint recognition module business, which will bring new services to the camera module vendors from the single price of the new business. A wave of bonus.

In fact, some new businesses have been recognized by the end-producer market, and the follow-up will also be conducive to increasing the gross margin of products.

However, it is obvious that a front line camera module maker is willing to spend a lot of money to invest in new business, but for two or three line camera module manufacturers, on the one hand, their own reserve funds are limited, and on the other hand, there is too much risk in the face of new technology, based on that, most of the two or three. Line camera module manufacturers are reluctant to invest heavily in new technologies (3D structured light module, triple camera module, under-screen fingerprint recognition module).

So the best breakthrough for them may be subdivision, which includes not only its own camera module business, but also the emerging market for cameras.

Take the original camera module as an example, because some terminals use a new way of purchasing, so the middle and low end camera module will be further lowered to the second line camera. Based on this, the camera module is ploughed in the field, and at the same time, it follows the front-line camera module as a vane. For the two or three line camera module manufacturers, it is a big breakthrough.

Apart from the original business, emerging markets are another powerful breakthrough for them. Earlier, I learned from the supply chain that some of the two or three line camera module manufacturers began to broaden their horizons to other fields, opening new markets to seek new economic growth points and alleviating the competitive pressure of the smartphone market.

And this emerging market includes artificial intelligence, vehicle mounted cameras, security, smart home, robots and other fields.

From the current situation, the whole camera industry is developing rapidly. Based on this, the breakthrough must exist, but at a critical time, the more the manufacturer of supply chain manufacturers need to keep a clear mind.