Economy

China smartphone shipments dropped 11% in Q3, according to research firm By Stocksak


© Stocksak. FILE PHOTO – A woman in a face mask after the coronavirus disease (19COVID-19), outbreak, looks at her phone while waiting for a Beijing subway on August 11, 2020. REUTERS/Tingshu Wang

SHANGHAI, (Stocksak), – Smartphone shipments in China decreased 11% in the third-quarter as the slowing economy of China took a toll upon consumer demand, Canalys research firm reported on Thursday.

The total number of smartphones sold by brands in the period was 70 million, compared to 78.9 millions in the same period last year.

Apple Inc (NASDAQ;) was the only brand to break the trend, with shipments jumping 36% and reaching 11.3 million. Analysts say the surge was due in part to demand for iPhone 14 Pro models, while the basic iPhone 14 model has seen weaker demand.

The sector continues to experience a dip, despite facing challenges such as a global chip shortage, China’s zero COVID policy and longer upgrade cycles.

Toby Zhu, Canalys analyst wrote in the report that vendors have been suffering from rapidly decreasing demand and high inventory in recent quarters which has severely damaged trust in the overall supply chains.

Vivo, which is owned by the Shenzhen-based conglomerate BBK was the top-ranked brand, shipping 14.1 millions devices and holding a market share at 20%. The top three brands – vivo OPPO and Honor – saw shipments decrease 23%, 27% and 16% respectively.

Apple is currently the fourth-most popular brand in China with a market share at 13%.

Amber Liu, Canalys analyst, said that the company is not isolated by weak mainland China consumer demand. She added that the company has been aggressively marketing its older-generation devices to fight off competition from other companies.

Xiaomi (OTC) Corp, ranked fifth in top-selling brands, saw shipments drop 17%.

News Source and Credit

Stocksak Editorial

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