Chinese Economics Thread
- Thread starter Norfolk
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more update here. very important to watch. Henan + Foxconn moving away. huge changes as Western companies are pressured to move production out
Chinese OEM outside of Huawei have very little technical innovation and more importantly, rely on importing the same expensive components Apple and Samsung do but without those companies’ special advantages, such as Apple’s brand prestige and software ecosystem, and Samsung’s ability to manufacture its own chips.
Consequently they simply can’t play the same cost efficiency games that Huawei and BYD could. They can’t beat Apple on ecosystem and they can’t beat Samsung on price, since the bulk of the cost is in the expensive components they can’t manufacture to begin with. This is the limits of pure assembly plays. You need a technological advantage to go further.
For Xiaomi I can at least see some kind of strategy forming, with their wide range of products + efforts in interconnectivity + simplifying and "mainstreaming" their flagship phone series. (Though I still think it's half-assed and they haven't invested a proper amount of money into marketing)
For Oppo, Vivo and Honor, they really have no strategy to become a globally competitive company. They all use the same formula, release one decent flagship + a million other cheaper phones with no concern for positioning or differentiation. Even a startup like Nothing Phone probably has more recognition than most of their phones.
Nowadays other than SOC, basically everything else can already be switched to domestic. Instead of Xiaomi, Oppo, Vivo, Honor teaming up together and making it their top priority they're unfortunately just hiding behind Huawei and hoping the US doesn't notice them
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Calling it generation can be a bit misleading, it is capacity that have grown 14.1%. A lot of this is Solar and Windpower that give inflated numbers since the capacity is the maximum during optimal conditions while a Nuclear plant for instance deliver its maximum 24/7 other then during maintenance/refueling. Simply put 1 GW of Solar or Wind is not equal to 1 GW of non intermittent sources like Coal,Gas,Nuclear and Hydro (Hydro can have restrictions as well).
Huawei is clearly miles ahead of Xiaomi, Oppo, and Vivo, but the latter are still top international patent filters. Oppo is 9th, Vivo is 13th, and Xiaomi is 14th. However, I am not familiar with their patent portfolios.
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Surprised no EV companies are on this list, yet Haier is. And the only car company on it is BMW.