Smartphone shipments in China fall 20.4 pc in 2020: CAICT data

As the number of handsets delivered to consumers dropped to 296 million from 372 million in 2019, domestic  shipments of smartphones in China fell 20.4 per cent as compared to last year, a government data has revealed.

The figures of China Academy of Information and Communications (CAICT), a state-backed think tank reflected both the impact of the Coronavirus crisis on the supply chain and demand and the ongoing trend for consumers keep their phones for longer before upgrading to a new model.

In 2019, shipments of smartphones had declined 4 per cent from the previous year, according to CAICT data.

Handset vendors had entered 2020 hoping that the year would bring renewed sales as consumers purchased new phones compatible with China's rapidly-expanding 5G networks. But, in the first half of the year, domestic brands Oppo, Vivo and Xiaomi Corp each saw steep shipment declines while Huawei, the leading Chinese brand at the high-end, continued to grow market share.

In the latter half, Huawei sales slowed as trade restrictions imposed by Washington on the company took effect crimping its supply of critical components. Oppo, Vivo, and Xiaomi have ramped up production in hopes of capturing that share.