OPPO Production Returns to Glory, Q3 Surpasses 42 Million Units

Meizu Q3 Smartphone Production Hovers at Bottom with Only 100,00

Core Overview: Production Freezes, Only "Survival" Volume Remains Meizu's latest announced smartphone production volume for the third quarter of 2021 is 100.0 K pcs (100,000 units), flat compared to the previous quarter (Q2), indicating that capacity has hit the "floor". When compared to the 150.0 K pcs in the same period of 2020, the year-on-year decline reached 33.3%. Since the beginning of 2020, Meizu's quarterly production has long hovered at a low level between 100,000 and 200,000 units, showing that the crisis of marginalization in the mainstream mobile phone market is irreversible. Key Details: The Collapse from 6 Million to 100,000 Units per Quarter Looking back at historical data, Meizu set a historical peak of single-quarter production at 6000 K pcs (6 million units) in the second quarter of 2016, rivaling Xiaomi and Honor at the time. However, production halved year after year after 2017, and in the fourth quarter of 2018, it fell below the million mark (700 K pcs) for the first time. The current production of 100,000 units is equivalent to only 1.6% of its peak, indicating that its influence in the supply chain and market demand have completely vanished; current production is merely to maintain minimum brand operations and inventory clearance. In-depth Attribution: Supply Chain Squeeze and Strategic Errors According to market analysis, the main reason for Meizu's decline lies in its past "small but beautiful" boutique strategy being unable to withstand the scale and price wars of the top players (Huawei, Xiaomi, OPPO, vivo). In 2021, amid global shortages of chips and components, the supply chain prioritized supply to top manufacturers, further squeezing the survival space for smaller manufacturers like Meizu. In addition, Meizu misjudged the product rhythm at the key node of the 4G to 5G transition, coupled with insufficient marketing resources, resulting in its market share in the China market in 2021 dropping to almost zero. Outlook and Risks: Geely's Entry Becomes the Only Turning Point Short-term Outlook (1-2 months): It is expected that Meizu's production will continue to remain at a low level of around 100,000 units, with business focus shifting to clearing old inventory and maintaining the after-sales system. Medium-term Outlook (3-6 months): The market is paying close attention to the acquisition case by Geely Automobile's Xingji Shidai (confirmed later in 2022). Meizu's future value no longer lies in mobile phone sales, but in the integration of its Flyme system with the Internet of Vehicles. If the merger proceeds smoothly, Meizu will transform into a part of the "car + phone" ecosystem, gaining new life through Geely's capital injection, but the independence of the pure mobile phone business will cease to exist. Online Search Sources https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEe_73V1xdgsgjq0zJsvc759iu20d8r2YNTmvTPEX1K5nEoKCkeINfnyYMokGEs_srCq78hNFYZQ6RvCNcraCZ7CRRiJq0bVrTFt__uXHTKo7YOUyuvAdRvYjexh4YrhWS6kDQAm351Emz423W5pcjGOSnuGJIHsOBtZqrLBitvSSlXr50= https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQGIOem-XNvOs3PkWM0CbW1osbAUXdI0pORSh8B2FS59n8g7yvy7w1_urrVFcWnFc83VD0YYlVd4LFfbigQoBfYOWywsFgIL-j-f2M4Ax-qrBwHY95IpUMj_bR7nzG6KUWXO https://vertexaisearch.cloud.google.com/grounding-api-redirect/AUZIYQEKGAtQQHuVJzGVotUp79_Wg8DS-y-nZvnQ1SN8BNvcMFLnbU0vktj14ULxHdSgUvcchByuQbiW0H5A6pF-fifr-V2n9vWOwZFyFIhp_ihBQlUc8GePTYp11Vyn15aLtvFRtBGGcHpqS3-eqm84zVwKGGedw02STMLu6lbypbMv43QbMA==