China’s smartphone shipments slumped 23% in Jan-Aug • TechCrunch
Smartphone charging is often seen as the leader in consumer spending in China, and at the moment, the picture isn’t too rosy.
The world’s largest smartphone market shipped 175.1 million phones between January and August, posting a sharp drop of 22.9% year-on-year, according to Research from a state-supported institution. In August alone, shipments were down 21.9% year over year.
The global smartphone market as a whole is slowing down, with a 9% dip In the second quarter due to a combination of challenges including the economy hit by the Corona virus, inflation and a slowdown after years of frenetic growth. It’s clear that China’s growing consumer appetite has played a huge role in driving the boom, and now that the world’s second-largest economy has hit a speed bump, the smartphone industry is taking an inevitable blow.
The era of economic miracles is approaching in China. Monday, official data mentioned GDP growth averaged 3.9% from July to September, beating expectations but well below the double digit that has propelled the country’s economy forward for three decades.
China is not only the world’s largest market for phone users, but also the largest producer of phones, with domestic brands such as Huawei, Oppo, Vivo and Xiaomi rising over the years to rival Apple and Samsung. These domestic phone brands started looking to expand abroad before their home market began to cool off. They have succeeded in seizing their share in the international market and in recent years have consistently participated in the top five alongside Apple and Samsung.
The smartphone industry is known to be nervous with modest margins, so it came as no surprise when Xiaomi and Oppo, who have long been known for selling budget phones, started offering quality models in recent years. Huawei has built a strong presence in the premium phone space ahead of the US Cut off its supply of important segments and major Android services. Having seen how over-reliance on advanced US technologies and geopolitical tensions have decimated Huawei’s revenue, Oppo and the like are rushing to Working on their smartphone processors.
Chinese companies are increasingly in need of their own high-quality chips as the Biden administration has hit China with its toughest. export controls advance this month. Analysts are still analyzing the impact of the policy, but initial observations show that the new rules will not only restrict Chinese companies’ access to advanced US chips, but also block their access to chip-making equipment, hampering the country’s capacity. To develop these advanced technologies.