China’s mobile phone shipments dropped by nearly 35 percent in April, according to data released by China Academy for Information and Communications Technology (CAICT) , a decline which was mostly due to coronavirus outbreaks in recent months that suppressed consumption. 

During the month, China’s total mobile phone shipments dropped by 34.2 percent to 18.07 million sets. The drop narrowed from a 40.5 percent plunge in March. 

Compared with March, China’s mobile phone shipments decreased by about 3.4 million sets, the CAICT data revealed. 

Independent tech analyst Fu Liang told the Global Times on Wednesday that the recent resurgences of coronavirus had restricted production and mobile phone sales at multiple cities, with logistics disrupted, production suspended and shops closed. 

“In particular, the severe COVID situation makes people more cautious about spending, as their outlook on future economic situation becomes dim.  

According to media reports, many mobile phone companies are also decreasing purchasing of upstream products as a result of shrinking market demand. 

The CAICT data showed that about 80 percent of total mobile shipments were 5G mobile phones in April, whereas in March, 5G phones accounted for 75.4 percent of overall mobile phone shipments.

In the first four months this year, China’s total mobile phone shipments slipped by 30.3 percent to 87.4 million sets. 5G phones account for 78 percent of overall sales. 

According to Fu, the proportion of 5G phone shipments has held at about 80 percent for some period, as the market of medium and low-end mobile phones are still dominated by 4G phones. 

“If mobile phone companies put their efforts into launching low-end 5G phones, the penetration of 5G phones will likely surge further in China. But for reasons like cost, it’s unlikely that 5G phones can completely replace 4G mobile sets,” Fu said. 

According to CAICT data, domestic mobile phone brands accounted for about 90 percent of overall shipments in April. A total of 39 new domestic mobile phone models made debut on the market during the month, up 50 percent year-on-year.

Global Times