Last year saw an unprecedented rise in demand for Chinese smartphones because of the fact that this is the sort of thing that could potentially end up giving people more affordable alternatives to expensive flagships that might have gotten out of their reach due to rampant inflation. Global supply chain crunches also contributed to Chinese phones being more widely available since many of the components that were being delayed were manufactured on the Chinese mainland itself.
With all of that having been said and now out of the way, it is important to note that Chinese smartphones have seen their demand plummet by as much as thirty three percent year on year. These smartphones represent about twenty percent of global demand, but in spite of the fact that this is the case it seems like the supply chain shortage is hitting China now along with everyone else. Chinese companies are struggling to fulfill orders, and the resurgence of the coronavirus pandemic which has sparked city wide lockdowns in many manufacturing hubs has not done much to ease matters.
Even Apple, arguably the biggest smartphone company in the world, is expecting revenues to decrease by as much as $8 billion in the next quarter. This suggests that all smartphone companies are having a hard time keeping up with demand with all things having been considered and taken into account. However, Apple has the unique benefit of being a manufacturer of high end smart phones who tend to experience much stickier demand than their budget handset counterparts.
A big chunk of the Chinese smartphone market comprises people that are looking for the cheapest option available. These consumers are likely going to halt purchases in the wake of inflation and currency crises around the world, whereas the people that buy iPhones or other flagship models are unlikely to be impacted by the same set of economic circumstances. That suggests that Apple might stand tall in the face of these shortages and it might gain back market share that it lost to Chinese companies last year and the trend might continue.
H/T: WSJ
Read next: Mobile Games See 1.7x Faster Growth Than Overall Market, Set to See $222 Billion Revenue in 2022
With all of that having been said and now out of the way, it is important to note that Chinese smartphones have seen their demand plummet by as much as thirty three percent year on year. These smartphones represent about twenty percent of global demand, but in spite of the fact that this is the case it seems like the supply chain shortage is hitting China now along with everyone else. Chinese companies are struggling to fulfill orders, and the resurgence of the coronavirus pandemic which has sparked city wide lockdowns in many manufacturing hubs has not done much to ease matters.
Even Apple, arguably the biggest smartphone company in the world, is expecting revenues to decrease by as much as $8 billion in the next quarter. This suggests that all smartphone companies are having a hard time keeping up with demand with all things having been considered and taken into account. However, Apple has the unique benefit of being a manufacturer of high end smart phones who tend to experience much stickier demand than their budget handset counterparts.
A big chunk of the Chinese smartphone market comprises people that are looking for the cheapest option available. These consumers are likely going to halt purchases in the wake of inflation and currency crises around the world, whereas the people that buy iPhones or other flagship models are unlikely to be impacted by the same set of economic circumstances. That suggests that Apple might stand tall in the face of these shortages and it might gain back market share that it lost to Chinese companies last year and the trend might continue.
H/T: WSJ
Read next: Mobile Games See 1.7x Faster Growth Than Overall Market, Set to See $222 Billion Revenue in 2022
