[SMM analysis] the market share of 5G mobile phones exceeds 60% lithium cobalt for the first time. The order price in August may go up.

SMM7: according to data from the China Institute of Information and Communication, in June 2020, the domestic mobile phone market shipped 28.63 million units, down 16.6% from January to June last year. The domestic mobile phone market shipped a total of 153 million units, down 17.7% from the same period last year.

In June 2020, 47 new models of mobile phones were launched in China, an increase of 23.7% over the same period last year. From January to June, there were 216 new models on the market, down 12.2% from the same period last year.

Among them, 17.513 million 5G mobile phones were shipped in the domestic market in June 2020, accounting for 61.2% of mobile phone shipments in the same period, and 24 new models were on the market, accounting for 51.1% of the number of new mobile phones on the market in the same period. From January to June, the domestic market shipped a total of 63.597 million 5G mobile phones and a total of 105 new models on the market, accounting for 41.5% and 48.6%, respectively.

If 2019 is the first year of 5G, then 2020 is the year of the full outbreak of 5G. According to data, 257000 new 5G base stations were built in the first half of the year, with a total of 410000 by the end of June.

The network speed of 5G is more than 10 times that of 4G, and the network connection capacity of 5G is larger. Even if 50 netizens surf the Internet at the same time, they can still have the advantage of speed experience above 100Mbps. 5G mobile phones are also more and more accepted by people, accounting for an increasing proportion of total mobile phone shipments, gradually rising from 0.2% in July 2019 to 61.2% today. This is the first time that 5G mobile phones have exceeded 50% of the domestic mobile phone market. The surge in 5G mobile phone shipments has driven the demand for batteries to some extent.

SMM believes that the proportion of 5G mobile phone applications continues to increase, the expected price is expected to rise from June to August, the procurement peak comes earlier in the second half of the year, the stock is available ahead of schedule, and the supply of lithium cobalt continues to increase from June to August. Upstream cobalt raw material prices rise, demand increases, lithium cobalt order prices may rise in August.