We have reported since October of 2018 that the risks of an US, Japanese, European and Chinese economic slowdown is likely for 2019 – and the signals keep coming.
China just announced that mobile phone shipments in the country totaled 14.51 million in February, down 20 percent year-on-year, making it the worst month for smartphone sales in many years. Of course this is due to a saturated market and of course an economic slowdown in China. Also note that the Chinese New Year had some impact on slower sales.
There are several banks producing research and one analyst is now saying that Apple and Xiaomi are two brands that are likely to feel the most pain as competition increases. This report released by the China Academy of Information and Communications Technology, and was reported on CNBC.
Apple is fighting back as Greater China revenue dropped 27 percent year-on-year, so stores have slashed prices to attract customers and keep market share.
Note that the recent Galaxy by Samsung is seeing sales that are better-than-expected – the main seller is $250 cheaper than the Apple version.
The replacement rate of phones in China is slowing as owners of the durable mid-range phones are keeping them lower, while the higher end product are not selling as well. Huawei`s Honor brand, the Nova series and Oppo A brands are selling well, taking market share from Apple and Xiaomi.