5G mobile phone shipments accounted for more than 60% in five months, and the annual lithium cobalt oxide output is expected to increase 15%-20% YoY

Published: Nov 17, 2020 12:00
According to the data from the China Academy of Information and Communications Technology (CAICT), the total shipment volume of the domestic mobile phone market stood at 26.153 million units in October, down 27.3% from the previous year.

SHANGHAI, Nov 17 (SMM) — According to the data from the China Academy of Information and Communications Technology (CAICT), the total shipment volume of the domestic mobile phone market stood at 26.153 million units in October, down 27.3% from the previous year. For January-October, shipments totalled 252 million units, down 22.1% from the prior year.

Shipments of 5G mobile phones came in at 16.76 million units in October, accounting for 64.1% of the mobile phone shipments in the same period. Shipments have accounted for more than 60% for five consecutive months. For January-October, shipments of 5G mobile phones totalled 124 million, and 183 new models were listed, accounting for 49.4% and 47.3% respectively.

In addition, 16 new models of 5G mobile phones were launched in October 2020, accounting for 57.1% of the new models launched in the same period. For January-October, a total of 183 new models were listed, accounting for 47.3%.

IDC predicted that in 2020, the global shipment of 5G mobile phones will stand at about 240 million units, while the contribution of the Chinese market will exceed 160 million units, accounting for about 67.7%. In the next five years, China will continue to occupy about half of the global market share.

5G mobile phones have accounted for over 60% for five consecutive months, and the surge in shipments has driven the demand for batteries to a certain extent, benefiting the lithium cobalt oxide market. According to an SMM survey, since the end of July, the prices of lithium cobalt oxide rebounded, and then remained stable in September. Daily average prices of lithium cobalt oxide came in at 222,000 yuan/mt as of November 16, 14.73% higher than the lowest level since the beginning of the year.

Average daily prices of lithium cobalt oxide

Sourse: SMM

SMM believes that the release of iPhone 12 in October will drive some mobile phone shipments. According to customer feedback, affected by the pandemic, the demand for notebooks, tablets, wearable devices and smart homes increased to varying degrees throughout the year. The 5G trend has driven the demand for lithium cobalt oxide to increase year on year, and the COVID-19 has significantly affected other 3C consumption increments. 5G mobile phone shipments may account for over 60% for seven consecutive months, and SMM expects China's mobile phone shipments to decline 23% year on year. China's lithium cobalt oxide output reached a new high year on year in October, and the annual output of lithium cobalt oxide is expected to increase 15%-20% year on year.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM‘s internal database model. They are for reference only and do not constitute decision-making recommendations.

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5G mobile phone shipments accounted for more than 60% in five months, and the annual lithium cobalt oxide output is expected to increase 15%-20% YoY - Shanghai Metals Market (SMM)