Overall, the country has seen purchasing around 214 million units this year, down from 275 million units last year. This slump was the result of sluggish demand and a supply chain crisis throughout the nation, where it’s strictly following zero-covid policy.
Fall of a Major Smartphone Market
Making hundreds of millions of smartphone purchases every year, China is the biggest market in the smartphone industry. But, a slump in demand due to ongoing economic turmoil and the recent COVID situation has led the nation to ask less, triggering a significant fall in smartphone shipments this year. As noted by the China Academy of Information and Communications Technology – a scientific research institute under the Chinese Ministry of Industry and Information Technology – there were about 214.5 million smartphones shipped to China this year until October. This is a 22% fall when compared to last year’s 275.3 million shipments. In the month of October alone, the volume has fallen 27.2% year on year to 23.8 million units! All these are reasoned to the ongoing economic downturn happening all over the world, with China taking a bit more with its zero-covid policy. Many manufacturing plants in the country have temporarily halted operations due to the rise in COVID cases, which also triggered worker protests at the Chinese Foxconn plant. Though the Chinese government relaxed some of the restrictions earlier this month, it’s unknown how well the volume of the shipment will pick up now. Well, an estimated report from IDC says that China may see a rebound if demand in 2024, but the current slump has already hit a few major OEMs. Citing the economic downturns, Xiaomi has laid off 10% of its workforce, while Apple – a major smartphone brand in the US, has struggled to keep up with the local conditions.
