Huawei 5G wins billions of orders in South Asia, blessed for manufacturers of shielding materials, absorbing materials, and thermal conductive materials

1. Good news! Huawei 5G wins billions in South Asian orders, European countries are starting to regret it

Huawei has good news in its 5G business. After achieving great success in the African market, it has recently won another order worth billions of dollars from Bangladesh in South Asia.

Industry insiders have stated that such an order is of great significance to Huawei, and its significance for Huawei is not limited to just billions of dollars in revenue. It is likely to indicate that Huawei will reverse its current unfavorable situation.

The Asian market is a blind spot for Americans

Throughout the years, the United States has mainly focused its efforts on blocking Huawei in Europe and the Americas. The reason for this is simple: the European market can generate the most revenue, and Europe is a gathering place for developed countries. These countries not only attach great importance to the construction of 5G networks, but also have sufficient capital to improve their domestic network environment.

Therefore, for global network suppliers, Europe is a battleground and the most fiercely competitive market. Once Huawei gains the initiative in the European market, it will be difficult for the Americans to restrict Huawei's development momentum.

So from the perspective of the Americans, Huawei cannot achieve good development in the European market under any circumstances, otherwise the blockade by the Americans will be meaningless.

And the Americas have always been the home ground of the Americans. Due to their close proximity, most countries in the Americas are afraid of retaliation from the Americans, so they obey their words. The entire Americas is like the Americans' own backyard.

And the Americans will never allow their backyard to be "controlled" by Huawei, so they have taken relatively tough measures throughout the Americas.

However, the Asian market is a blind spot in the vision of Americans, especially in Central and South Asia, which Americans basically have no time to attend to.

Firstly, due to their closer proximity to China, many countries in Central and South Asia have very good relationships with China. As a country with strong economic and technological strength in Asia, China often provides business assistance to neighboring countries. At this time, it is difficult for the United States to win them over to deal with China.

In addition, Americans believe that the economic and technological strength of Central and South Asian countries is average, so they invest less energy in these areas.

Americans miscalculated, Huawei is likely to gain the initiative in the Asian market

In fact, the calculations of the Americans are not unfounded. Although many countries in Central and South Asia want to cooperate with Huawei, they are afraid of offending the United States, so everyone is reluctant to make a statement.

After all, no one wants to be the first to break the deadlock, as it is likely to be resented by Americans and become a target for them to 'scare others off'.

However, for these countries, Huawei is also tempting. After all, some countries in Central and South Asia are indeed much weaker in terms of economic strength. At this time, when it comes to 5G network construction, their biggest concern is cost-effectiveness.

And cost-effectiveness happens to be Huawei's biggest advantage, so partnering with Huawei is their best choice. At this time, Bangladesh was the first to announce cooperation with Huawei, which will definitely help other countries overcome their concerns. After all, someone has already set a precedent, so no one needs to hide it.

For Huawei, if it captures this customer in Bangladesh, it is likely to help Huawei gradually expand its Asian market, and in the future, Huawei may dominate the Asian market.

At present, companies such as Ericsson and Nokia have focused their energy on Europe, while they have not invested too much energy in the Asian market, which gives Huawei a good opportunity.

At present, for Huawei, every market is precious. Since we cannot win by the quantity of the market, we must win by the quality of the market.

However, the 5G network construction achievements demonstrated by Huawei in many developing countries have attracted the attention of many developed countries, especially the European countries influenced by the Americans. After giving up Huawei, their domestic network construction is not very smooth, and many countries have even begun to regret and consider re establishing cooperation with Huawei. This is great news for Huawei, and it also proves that Ren Zhengfei's persistence is not wrong.

2. The expected shipment of TV panels in 2022 is 254 million pieces, which will decline for four consecutive years

On January 3rd, according to Omdia's latest report, in response to the oversupply in the fourth quarter of 2021, panel manufacturers have shifted more production capacity to IT panels or larger sized TV panels. It is expected that the overall TV panel shipment in 2022 will be about 254 million pieces, a decrease of 2% year-on-year, which will also be the fourth consecutive year of declining shipment volume. The trend towards larger sizes continues, with an increase in shipments of 65 inch, 75 inch, and 85 inch panels, while shipments of panels below 55 inches will continue to decrease.

On January 3rd, according to Omdia's latest report, in response to the oversupply in the fourth quarter of 2021, panel manufacturers have shifted more production capacity to IT panels or larger sized TV panels. It is expected that the overall TV panel shipment in 2022 will be about 254 million pieces, a decrease of 2% year-on-year, which will also be the fourth consecutive year of declining shipment volume. The trend towards larger sizes continues, with an increase in shipments of 65 inch, 75 inch, and 85 inch panels, while shipments of panels below 55 inches will continue to decrease.

The promotion of Black Friday in 2021 has compressed the price operation space of the brand factory because the TV panel cost is at the high point. However, Wal Mart, the leader of the US retail channel, bucked the trend and launched the slogan of "Go big at home". With Wal Mart's own brand Onn as the representative, it introduced very convenient prices and promoted the sales volume in the North American market.

For example, Onn has launched a 70 inch LCD TV and is promoting it at a price of $398. Compared to Samsung and LG Electronics, the two largest 70 inch LCD TV brands, the average retail price of its 70 inch TV is about $650.

Omdia pointed out that although the killer price of $398 for a 70 inch TV was only during Black Friday, it can be seen that the price of a 70 inch TV will significantly decline in the following period, which will directly affect the competition for TVs below 65 inches and impact the market sales of mid size TVs such as 50 inches and 55 inches.

From the perspective of panel supply, in response to the oversupply in the second half of 2021, panel manufacturers continue to transfer the production capacity of 8.5-generation and 8.6-generation factories to monitor panels and laptop panels. Especially for mainland panel factories, the production capacity of the 10.5 generation factory is focused on large-sized TV panels, while the production capacity of the 8.5 and 8.6 generation factories uses the cutting method to produce large-sized TV panels and IT panels.

Overall, with the continuous increase of 65 inch, 75 inch, and even 85 inch panels in 2022, the supply of panels below 55 inches will gradually decrease.

Omdia estimates that the global supply of TV panels is expected to be 254 million pieces in 2022, a decrease of approximately 2% compared to 259 million pieces in 2021. This is also the fourth consecutive year of decline in the shipment quantity of TV panels since 2019.

On the other hand, in order to increase added value, TV manufacturers expect to continue to increase the shipment of high-end TV models such as quantum dot TVs, Mini LED backlights, and OLED TVs in 2022. However, quantum dots and Mini LED backlit TV panels not only remain expensive, but also have correspondingly increased non panel costs. In contrast, as LGD production capacity continues to increase, OLED TV panel prices continue to decline, resulting in a significant increase in OLED TV panel shipments in 2022.