Daily Management Review

Domestic Smartphone Shipments In China Continue To Drop In Double Digits In November


The month of November extended the double digit decline in the domestic shipment of smartphones in China. There was 17 per cent year on year drop in domestic shipments in the largest smartphone market of the world, showed data from the government released on Thursday.
The government data clearly points out that despite a fast turnaround of the Chinese economy from the novel coronavirus pandemic hit, there was sustained weak demand in the Chinese market for mobile handsets. That also means that there will be greater competition for wining over customers from a smaller pool of customers for smartphone manufacturers such as Apple Inc and its rivals.
According to data from the China Academy of Information and Communications Technology (CAICT), a state-backed think-tank, 27 million handsets were shipped by smartphone makers to domestic customers in November while 33 million phones were shippe3d in the same period a year ago.
That was preceded by a 27 per cent year on year decline in shipments of mobile phones to domestic Chinese consumers in October and a 36 per cent drop in domestic shipments in September.
Despite releasing and launching new flagship handsets in October, there was a drop in domestic shipments in China for both Apple and Huawei Technologies Co Ltd during the third quarter, showed data from third party research firms.
But despite the broader market slump, bullish sentiments were expressed by analysts about sales of devices from both the companies in the short term.
And with Huawei facing tough sanctions form the United States government that has caused problems in the company getting parts for its phones, market share in China has been grabbed by Huawei’s rival Xiaomi Corp.
The revenues for Xiaomi for the third quarter increased and came in at 47.6 billion yuan, which was a rise of 47.5 per cent compared to the same quarter a year ago.
Production targets for 2021 have been raised by the company as well as by other local vendors including Oppo and Vivo as the companies anticipate that there will ne more difficulties and headwinds for Huawaei in its supply chain resulting in shortage of crucial parts which ultimately will impact the ability of the company top bring devices to the market.