Smartphone sales could drop in Q2, analysts say
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Analysts believe that China’s smartphone market may decline during the second quarter due to a rebound in covid cases. Analysts believe Apple will still be a strong player in this market, as Apple continues to draw users from the top-end.
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China’s sudden surge in Covid cases could harm sales of smartphones in the largest smartphone market, if not controlled by the U.S. AppleAnalysts told CNBC that the economy could hold its own.
China’s authorities reported more than 22,000 Covid infections Wednesday in Shanghai, the largest city. The authorities in China have taken measures to stop the spread of Covid infections. strict lockdown measuresThe city is threatening its logistics consumer spending.
Strategy Analytics executive director Neil Mawston forecasts a 20% decline year-over-year in smartphone shipments for the second quarter.
Counterpoint Research’s Neil Shah said that smartphones sales in April and May may fall by 12% to 13% annually.
Due to the aforementioned, sales could rise in June. huge discount shopping eventAnd as Covid decreases. Shah indicated that smartphone sales could drop by as much as 3% or 4% in China. Shah said that if the Covid situation persists, then the market might drop to 12% annually.
China’s Android market is still a fierce one. Half a dozen brands, including Xiaomi, are fighting for their share of the shrinking Android pie.
Neil Mawston
Strategy Analytics executive director
According to Will Wong (IDC research manager), smartphone shipments may fall by around 3.4% in the second quarter.
Wong stated that the Covid epidemic and slowing economic momentum would have the most impact on consumers. The supply disruptions are less concerning than the factory bubbles, and could be mitigated by the experience of the government in containing the epidemic.
In March, Apple iPhone assembler FoxconnJust briefly close one of its main factories in Shenzhen due to Covid. China tried to minimize disruption by keeping factories running during Covid epidemics.
Android players vulnerable
Wong of IDC stated that China’s decline in smartphone sales during the second quarter is due “primarily to the weaker momentum on the Android market.”
Android is Google’s smartphone operating system. A modified version is used by Chinese brands. Android phone vendors include Chinese smartphone makers like XiaomiOppo and Vivo.
Strategy Analytics’ Mawston stated that the Android market in China is still a very competitive one, where half-a dozen brands (like Xiaomi), are fighting for price to get a slice of the shrinking Android pie.
Apple might be quite successful. Shah stated that Apple may see a drop of 4% to 5.5% in its shipments during the second quarter. However, this could be partly due to seasonal effects from brand-new product launches. Apple’s newest products were released towards the end last year.
Shah and Wong both claim that Apple continues to profit from the fall of Huawei at the premium end market. Huawei’s smartphone business has been crippledDue to U.S. sanctions, the tech giant was deprived of key components such as cutting-edge chips.
Wong stated that Apple may actually experience positive growth during the second quarter, “despite the decline in Huawei and lack of high-end competition.”
Mawston stated that Apple will increase its market share in China by 2022, “as the loyal and affluent customers upgrade to 5G models or are more affordable.”
Next-generation mobile internet (also known as 5G) promises extremely fast speeds. Apple released the 2022 version of the cheaper iPhone SE in MarchThis offers 5G.
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