Industry News

Winter Of Smart Phones: 20% More New Aircraft Shipments Fell 40%

Many analysts and industry insiders said that smart phone sales in 2018 will decline sharply. Many people did not believe it at that time, but today's official data from the China Institute of Communications places the cruel reality in front of everyone: 2018 In February, the domestic mobile phone market shipped 18,122,000 units, a decrease of 38.7% year-on-year! It can be said to be a blip.

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Some people feel comfortable saying that the decline in shipments was due to the fact that during the Spring Festival period in February, shipments fell in reasonable terms. However, compared with this year, shipments in February 2017 amounted to 29.56 million. The argument that Spring Festival will affect shipments is not valid. In fact, in January, the China Communications Academy stated that smart phone shipments for the month had fallen by more than 16% year-on-year, but nobody expected that the decline would be close to 40% in February.

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Even more frightening is that this is still the case when mobile phone manufacturers release more new machines. It is reported that in February 2018, 75 new models were launched, an increase of 120.6% year-on-year. The total number of new machines in January and February reached 126, an increase of 29.9% compared to the same period last year. However, in these two months, the total number of smartphones Shipments fell by 25.2%.

In terms of other data, shipments of 4G handsets also fell by 37% year-on-year, but the proportion of 4G handsets in all mobile phones has reached 96.8%, and China’s 4G penetration has done a good job. On the brand side, domestic brands accounted for 84.8%, and foreign brands accounted for 15.2%. Considering the iPhone's share, domestic brands have become the absolute main force in the domestic mobile phone market.

As for why there are such declines, there are still two main reasons. One is that the popularity of smart phones in China is already very high. When the market is close to saturation, manufacturers can only attract users from the stock market. However, this brings the second problem. Now that the smart phones are in the stage of lack of innovation, manufacturers can only work on screens and pictures, and they cannot propose revolutionary functions to attract users to change machines.

The above situation does not only exist in the Chinese market, the world's smart phone industry has encountered such a dilemma. So no surprise, sales of smart phones will decline sharply every month. The industry’s insiders have already predicted the decline of smart phones, but no one thought that this winter will come so fast and so fierce.