Ziguang Zhanrui warns of infringement of the company's chips were refurbished and sold in the second-hand market

Recently, Unisplendour Zhanrui, a major mobile platform manufacturer, issued a notification letter on the incident of second-hand refurbishment and sale of the company's chips, warning manufacturers of the adverse impact of bottom-line competition on consumers and platform manufacturers. It is understood that in recent years, the cost competition in the consumer electronics market has intensified, among which the low-end mobile phone market has deteriorated day by day, and the industry has long experienced bad competition in the application of secondary processing mobile phone chips to feature phones.

According to industry sources, the current market share of second-hand materials in the low-end mobile phone market is quite large, mainly CPU and memory. Due to the information asymmetry between the supply and demand sides, buyers cannot trace the source of the products, and some chip manufacturers have high counterfeiting capabilities. There are also some second-hand refurbished chips that can be used in new equipment, but the life cycle of consumer-grade chips is about 5 years. If they are used after refurbishment, the service life and performance parameters will be greatly reduced.

According to CINNO Research data, in the first half of 2022, China's smartphone SoC shipments were about 134 million, down about 16.9% year-on-year. Among them, Ziguang Zhanrui grew by 38% year-on-year, making it the brand with the largest positive growth year-on-year.

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