Chinese consumers are buying far fewer smartphones than before due to the re-delivery of the corona pandemic and rising inflation. The number of smartphones shipped to China fell 34 percent in April compared to the same month a year ago, according to according to the Wall Street Journal from data from the China Academy of Information and Communications Technology. In the first four months of this year, shipments fell by 30 percent. Globally, the decline in smartphone sales in the first quarter was 7 percent.
Many phone manufacturers are facing difficult times due to the collapsed demand in China. China is responsible for about 20 percent of all smartphones sold in the world. In addition, the smartphone sector also faces supply-side problems, partly due to global shortages of certain chips and logistical problems.
Less production due to lockdowns
Production is also suffering from the strict corona lockdowns in some Chinese cities. As a result, all kinds of factories have had to temporarily stop production. Among other things, the preparation of the mass production of the iPhone 14 would therefore be have fallen behind† Apple previously warned that it expects to lose $8 million this quarter from lost production capacity, but analysts haven’t factored in lower demand for iPhones so far.
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Largest decline in cheap smartphones
The low-cost smartphone segment has been hit hardest by the drop in demand, analysts say, as consumers with less to spend are more likely to postpone purchases due to economic uncertainties.
Analyst Ming-Chi Kuo tells the Wall Street Journal that the Chinese phone brands Xiaomi, Oppo and Vivo are particularly affected. For Apple, the consequences would still be relatively small, with the exception of the sale of the affordable iPhone SE.
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