Smartphone shipments in China last year fell to their lowest level since 2013

Shawn Knight

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What just happened? Economic slowdown and weakened consumer purchasing power in China resulted in a market drop of 14 percent. Significant consolidation among the top five smartphone players in the country was also witnessed as names like Huawei and Vivo grew their market share while others slid.

Smartphone shipments in China totaled just 396 million units in 2018, their lowest level since 2013 according to a new report from market analyst firm Canalys.

From 2010 through 2016, smartphone shipments enjoyed steady – and at times, explosive – growth. Things tapered off in 2017, however, as shipments in the country slid by four percent. From 2017 to 2018, the falloff was much steeper at 14 percent.

According to Canalys, Q4 2018 marks the seventh consecutive quarter of decline in China.

While overall shipments are down, the country’s top five smartphone vendors aren’t exactly suffering. Collectively, in terms of market share, they’re thriving.

Huawei, Oppo, Vivo, Xiaomi and Apple saw their combined market share increase to 88 percent in China in 2018, from just 73 percent a year earlier. Huawei and Vivo were the biggest winners with unit growth of 16 percent and nine percent, respectively.

Mo Jia, an analyst from Canalys’ Shanghai office, said Huawei’s dual-brand strategy has been a huge success, with sub-brand Honor helping to cover a broad range of price bands. On the high-end, the company has used technological innovations to help extend its lead.

Apple’s unit growth was down 13 percent in 2018, representing the third consecutive year of declining shipments in China.

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Maybe they're just hit the cell phone saturation point? There are 1.3 billion people in China, and according to that chart, they've averaged more than 400 million phones distributed EACH YEAR over the last 5 years.

Which adds up to 1.5 phones for every person in China regardless of age.
 
The other thing to consider. In China, you have a "social" credit score, shaming and everything else in that dictatorship. Buy a non Chinese phone, might put you on the bad side of the government.
 
Smartphone prices have gradually increased past $1000 - both Apple and Samsung.

Unless you are buying smartphones for a very specific purpose, you really DON'T NEED an annual upgrade.

I bought an XS Max 512GB specifically to be able to record 4K video for as long as possible.

$1600.

I have it, but I don't feel iPhone 2019 will offer me anything that forces me to upgrade.

I will wait till iPhone has 1TB.


Last year I bought my mother a Stylo 4 and my girlfriend a Samsung J6. Both phones, oddly enough, felt very premium and had features I wanted my iPhone to have ie: face recognition AND a TouchID.
 
The other thing to consider. In China, you have a "social" credit score, shaming and everything else in that dictatorship. Buy a non Chinese phone, might put you on the bad side of the government.
Interesting, considering that this "credit score" still doesn’t exist.
I guess, if you keep repeating the false claims often enough, they become true. At least, that’s what Goebbels taught. ;-)
 
There is a very simple explanation for this:
They have technology that can easily compete with ours (in fact, they even manufacture ours). Their SmartPhones speak perfect Chinese and come with Chinese services; all of this, for less than half the price.
 
Interesting, considering that this "credit score" still doesn’t exist.
I guess, if you keep repeating the false claims often enough, they become true. At least, that’s what Goebbels taught. ;-)

From the NY time article...

https://www.nytimes.com/2019/01/28/technology/iphones-apple-china-made.html

“China is not just cheap. It’s a place where, because it’s an authoritarian government, you can marshal 100,000 people to work all night for you,”

http://businessoutlookbd.com/2018/10/21/us-china-trade-war-boon-for-bangladesh/
"While the ongoing trade war between the US and China, the world’s two biggest economies, has sent alarm bells ringing where global growth is concerned, Bangladesh may end up as a beneficiary if it can play its cards perfectly."

https://www.cnbc.com/2017/01/31/chi...d-a-low-cost-sourcing-destination-survey.html
"World no longer sees China as a cheap outsourcing destination: Survey"

https://www.ft.com/content/2a804e04-0c95-11e2-a776-00144feabdc0
"China turns to robots as labour costs rise"

https://www.aol.com/2012/02/02/why-made-in-china-is-starting-to-get-too-expensive/
"Made in China' Is Starting to Get Too Expensive"

Bottom line: The big companies (the few rich people controlling them) are continually seeking for even cheaper slaves. China is far off from being anywhere near the worst. ;-)
 
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