Chinese Economics Thread
- Thread starter Norfolk
- Start date
Not surprising. Apple still produces fantastic stuff, and an increasing amount of suppliers are Chinese. You add rising incomes plus Yuan appreciation and more people than ever can afford them. The ban on Huawei is of course a factor, but it isn't sufficient to explain it. If Apple wasn't up to the task, we'd see other Chinese OEMs gain marketshare instead.
Speaking of which, the Chinese display firm BOE is winning new contracts from Apple.
I disagree. Huawei was eating up Apple market share before the ban. It was also forcing domestic smartphone vendors to innovate and be price competitive. After the ban, Xiaomi and other Chinese smartphone vendors raise their prices and stop upgrading their hardware. It has been over 2 years after the ban. Most high end smartphones are still using 5nm. A few years back, we should be using 3nm and better chips already. Beside, Apple iphone is a big disappointment for the last few years. Nothing innovated or unique or creative about iphone but just using its ecosystem is dominated and stay ahead of its competitors.
The other Chinese OEM, like Xiaomi, oppo, and vivo are gaining market share. Apple is only popular in China right after new model release in September each year.
From what I understand, most cost effective node is 20-28 nm in terms of performance per price.
The below are the design costs:
Note they talk about 'per chip' costs, but those are not accurate, because 'per chip' cost cares about die size but , yet they claim an order of magnitude cost difference.
Both Apple and Xiaomi are making more money now than two years ago so chip cost is not the factor why they have stopped upgrading and innovated.From what I understand, most cost effective node is 20-28 nm in terms of performance per price.
The below are the design costs:
Note they talk about 'per chip' costs, but those are not accurate, because 'per chip' cost cares about die size but , yet they claim an order of magnitude cost difference.
are they making 2x-3x more money? if not then their profit margin would decline.
And yet their profits double over two years.
I don't know the specifics of a phone manufacturer. They are very removed from the semiconductor fab and design level. There are more significant costs beyond semiconductor such as display, battery, PCB, etc.