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China’s Mobile Phone Market Saw a Significant Decline in July

Well-known Chinese news site NetEase (NASDAQ: NTES) recently reported that, according to official data released by the China Institute of Communication, in July, mobile phone shipments in the domestic market were 19.908 million units, a year-over-year decrease of 30.6 percent. Among these, 5G mobile phones were 14.672 million units, a year-over-year decrease of 35.7 percent. From January to July 2022, the domestic shipments of mobile phones totaled 156 million units, a year-over-year decrease of 23.0 percent. Among these. 5G mobile phone shipments were 124 million units, a year-over-year decrease of 17.7 percent. In July, domestic brand mobile phone shipments were 18.281 million units, down 29.4 percent year-over-year, accounting for 91.8 percent of mobile phone shipments in the same period. A total of 18 new models were launched in July, down 25.0 percent year-over-year. The latest data from market agency CINNO Research shows that in July, affected by the continued downturn in consumer spending in the Chinese domestic smartphone market, except for Apple mobile phones, mainstream domestic Android brands all showed a negative year-over-year decline. Among them, Vivo and OPPO fell significantly. They were down 34.7 percent and 33.3 percent year-over-year respectively. Honor and Xiaomi fell by 12.1 percent and 17.5 percent year-over-year respectively. Thanks to the continued strong market performance of the iPhone 13 series, Apple saw a positive year-over-year sales growth in July. In the face of the continuous decline in domestic market demand,  there has been no breakthrough in chip design, or in appearance or function. Major domestic mobile phone brands are still facing serious challenges.

Source: NetEase, September 15, 2022