Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that the International Data Corporation (IDC) has released its latest mobile phone market report. IDC mentioned in the report that, in the context of improving market supply, soaring inflation and economic uncertainty have severely suppressed consumer spending, global mobile phone inventories have grown significantly, and market demand has been limited. The region with the largest decline in global shipments was in China, down more than 14 percent year-over-year. In the global market; the ranking of manufacturers did not change much in the second quarter. Samsung maintained growth in all regions except Europe with a share of 21.8 percent, and Apple ranked second with a share of 15.6 percent. IDC predicts that the Chinese domestic smartphone market will ship about 280 million units in 2022, down more than 40 percent from the peak of 500 million units. The Chinese Q2 decline is the fifth consecutive quarter of declines in shipments and the second consecutive quarter of double-digit declines. IDC expressed the belief that, in the first half of the year, the sluggish Chinese domestic market was a result of the Covid-19 lockdowns and the lack of sufficient differentiation among mid-to-high-end products. Also, China’s huge smartphone market is highly saturated. As of the end of last year, there were more than 1.6 billion active mobile phone accounts in China, surpassing the population of 1.4 billion. The penetration rate is much higher than the global average, resulting in intense competition.
Source: NetEase, July 29, 2022