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Smartphone Shipments to China Decreased, Devastates Sales

Apple’s shipments to China decreased due to less consumers interested in upgrading old models.

Almost all the time, a consumer only upgrades their gadget if there really is a need to upgrade. Phone buyers in China and the US usually do that after a year or more of owning a newly released phone during the time of their purchase.

Not just Apple, but companies like Samsung, Oppo and Huawei are struggling to gather more interested customers.

When the Golden Week in China happened, a time where people get time off from work and travel and spend money on various things, many smartphone shops remained empty. And during Q1 2018, China had officially met its biggest decline in smartphone shipments since 2013.

This could also be from vendors imitating each others’ design, leaving little variety to choose from.

Meanwhile,China based multinational investment holding conglomerate Tencent reports revenues of 74 billion yuan on Q1 and Q2 of 2018, which is a 30 percent increase from last year. The company’s main cash flow comes from smartphone games such as PLAYER’S UNKNOWN BATTLE GROUNDS Mobile (PUBG) which gained an immense popularity among PC gamers in China, and later on was available on mobile.

Essentially, there are little incentives for a consumer if they keep upgrading their phone as long as they only use it for minimal amount of purposes. One of these could be mobile gaming, and as long their favorite game works on that phone, it is fine.