Chinese 296m 372m, According to the Chinese government data, the local smartphone shipment saw a decline to only 296M in 2020, while in 2019, the number was 372M. (20.4% decline).
Key Takeaways:
- The Chinese smartphone shipment saw a 20.4% decline, from 372 million in 2019 to 296 million in 2020.
- The decline was due to the impact of the coronavirus crisis and people keeping their phones for longer.
- Despite the overall decline, Huawei continued to grow in the high-end smartphone market.
- The first 10 months of 2022 saw a 22% decline in the number of smartphones shipped from China compared to the same period in 2021.
- The worst month was October 2022, with a 27.2% decrease in smartphone shipments compared to October 2021, totaling 23.8 million units.
The Chinese have been known for manufacturing and shipping the best smartphones to the world due to cheap labor and flexible tax laws for businesses worldwide. However, when Covid-19 hit, no one could dodge its strike; not even the Chinese.
The China Academy of Information and Communications (CAICT) released a report in which they revealed some shocking numbers about the supply and demand chain of the Chinese smartphone shipping and manufacturing market.
The recent decline (from 372M to 296M) may be due to two reasons:Â
- The Coronavirus Crisis
- People Keeping their Phones for Longer Now
The coronavirus crisis did impact everyone financially; it also taught the average smartphone consumer that they don’t have to upgrade their phone every year. The year 2019 also registered a minor decline of 4% when compared to 2018 data (Chinese 296m 372m).
In 2020, there was new talk about the revolutionary fast network of 5G which, the smartphone companies were proud of and anticipated a promising number of sales but Chinese brands Vivo, Xiaomi, and Oppo didn’t see much progress. Instead, they surprisingly showed a decline in 2020.
Huawei, on the other hand, is a different story. While the Chinese smartphone shipment declined to 296M from 372M, Huawei continued to win in the high-end smartphone area and showed significant growth.Â
It is noted that Huawei was banned by the Trump administration due to alleged data stealing. This restriction resulted in the Chinese flagship smartphone company’s decline in sales in the global smartphone market.
2022 was even worse for the Chinese smartphone shipment industry. CAICT showed some disturbing numbers suggesting the first 10 months of 2022 registered a 22% decline (even worse than in 2020).
Between January 2022 and October 2022, the number of smartphones shipped from China decreased from 275.3 million to 214.5 million units. October 2022 was the worst month in terms of numbers; the shipment of smartphones from China went down by 27.2% (Chinese 296m 372m)compared to October 2021, with a total of 23.8 million units shipped.
Chinese Smartphone Shipment in 2023 – Rise or Fall?
The Chinese smartphone industry is having a tough time in 2023 because of problems with getting supplies and people not buying as many phones. This trend is expected to continue until 2024. “The Chinese smartphone market is only expected to see full-year growth in 2024,” stated Will Wong, a Singapore-based IDC analyst.
People are not interested in buying new phones and are spending their money on other things. This means that even top smartphone brands are not selling as well as they used to. It is estimated that in 2022, between 250 million to 260 million smartphones were sold, the lowest number since 2015.Â
The COVID-19 virus has also made things worse for companies that make and sell smartphones. They are having trouble getting things going again, and the effects of the COVID-19 virus will be felt until at least the first half of 2023.
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