Chinese smartphone market towards the worst result of the last 10 years

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It is now quite clear that the smartphone market is going through a difficult phase, either because the product itself is now very mature and therefore long-lived, or because globally there is more and more post-pandemic economic uncertainty, or because the market is saturated with devices. The statistics that support this theory are certainly not lacking, but the latest ones released since Nikkei relating to Chinese marketwhich as a pure quantity is the largest in the world, show a level of contraction that had never before been observed.

In a nutshell, in the first half of the year, smartphones shipped in the country fell by as much as 21.7% on an annual basis, stopping at 134 million. At this rate, it is very likely that they will not be achieved not even the 300 million for the whole year, which would be the worst result of the last ten years. The data, coming both from the national research institute CAICT (China Academy of Information and Communications Technology) and from the private research company Canalys, are also confirmed by the interviews conducted by the source with the clerks of local telephone shops.

Technically, for those who have to buy a smartphone it is a good time: in order to sell, producers apply larger discounts. Even Apple has offered discounts on some of its iPhones on its local official website for the first time in history. The summer period is traditionally quite weak, so the sales are not necessarily a novelty in absolute terms, but some interviewees observe that this year the prices have actually reduced, while for example last year we were limited to giving away gadgets and accessories.

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According to a Vivo executive interviewed by the source, the upgrade time from one model to another went from 16-18 months to as much as 36. In addition, 66% of the Chinese population now own a smartphone, so there isn’t much room for expansion anymore. Clearly, this has a direct impact on manufacturers, especially local ones such as Xiaomi, OPPO and Vivo, but also and above all on component manufacturers. Goodix, which focuses on semiconductors, said it expects profits to drop by as much as 95% year-on-year for the first half of the year.