The Chinese smartphone market continues its downward spiral in terms of shipment. A report by China Academy of Information and Communications Technology (CAICT), shows that phone shipments fell by 30.5% in Q3 when compared to the shipment last quarter. The research institute under the Ministry of Industry and Information Technology also disclosed that gross shipment for the third quarter fell by 5.8% Year-on-Year.
The data also shows a reduction in the monthly shipments for September by 5.7 per cent YoY, berthing at an estimated 34.7 million units. However, mobile phone shipments increased by 17.4% month-on-month. Smartphones accounted for 95.7% of the entire mobile phone shipments in China while the remain proportion is covered by feature phones. The gross shipments of both smartphones and feature phones declined 7.1 per cent year-on-year to peak at an estimated 36.2 million units.
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The report also reveals that shipments in the first nine months of this year (that is from January to September) slipped 4.2 per cent from a year earlier to peak at 275 million units. With just three months left before the year runs out, we don’t see the industry rebounding. Chinese OEMs are looking to revive smartphone sales with the launch of 5G phones next year.
The slow growth is said to be as a result of debilitated consumer confidence in the domestic market occasioned by the US-China trade tensions and off-peak season effects in the overseas market. We expect the market to improve slightly in Q4 but the industry may only experience a resurgence nest year when more 5G phones get launched.
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