The worst month in recent years for smartphone shipments in China

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The smartphone industry in China has experienced its worst month in recent years.

The data particularly show signs of bluntness for Apple in China.

China’s mobile phone shipments reached 14.51 million in February, according to official data released by the China Academy of Information and Communications Technology, a 20% decline compared to last year. In particular, smartphone data is 13.8 million.

According to an analyst, Apple and Xiaomi are the companies that probably paid the most.

For analysts, Apple is among the big losers. In the first quarter of the fiscal year which opened on December 29, 2018, Apple’s earnings in China fell by 27% compared to last year.

Other indicators also demonstrate Apple’s weakness in the country. The number of searches from iPhones on the popular Chinese search engine Baidu fell by 48%, which is the fifth consecutive month of decline.

Xiaomi also suffered the growing competition in the country.

Instead, the Honor brand of Huawei, Nova series and Oppo are growing.

February is generally a rather weak month due to the Chinese New Year holidays.

But this February recorded some really negative data compared to previous years.

The reasons for the decline stemmed in part from local factors, such as the recent slowdown in the Chinese economy, from a saturated smartphone market, and from retailer stores still full.

Xi Wang, an IDC analyst contacted by CNBC, said shipments in January were quite high, higher than demand, in order to start the year in a positive manner.

According to Neil Campling, there is also a lack of truly revolutionary products, the mere evolution is no longer sufficient, and prices are too high. The life cycle of the devices has also been extended since the existing technology is already satisfactory.

“We are waiting for the next big thing — but there are no clear signs yet of what that could be”. He said that the new foldable smartphones presented by Huawei and Samsung will remain in niches for now.

 

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