China’s mobile phone demand seems to have been hit by a slowing economy and a saturated market.
According to data released Tuesday by the China Academy of Information and Communications Technology, mobile phone shipments in China plunged almost -20% year-over-year to 14.51 million in February. Smartphones in particular experienced a more than -20% decline in shipments, as revealed by the same study.
While the week-long Chinese New Year holiday could have player a part in weaker demand, what’s probably alarming this time is that 2019 is the worst February since atleast 2013 with regards to phone shipments in China. Factors like macroeconomic sluggishness, a saturated smartphone market and excess inventory could have contributed to the shipment decline in the nation, as indicated by China senior market analyst for IDC, Xi Wang, to CNBC.
The slowing of smartphone shipments in the world's second-largest economy could potentially impact major American or global makers of smartphones. Apple Inc. for example, suffered a nearly -27% year-on-year plunge in its Greater China revenue in the three months ending Dec. 29, 2018. Soon after, major retailers reportedly slashed iPhone prices in China, in a bid to boost demand.