China faces supply chain disruptions, weak consumer demand amid Covid surge; smartphone industry set for a tough 2023

In the first 11 months of 2022, sales were down 23.6 percent compared to the same period in the previous year

January 9, 2023

‘Tough situation’ for smartphones, not expected to recover till 2024, IDC analyst says

Facing supply chain disruptions and weak consumer demand amid the Covid surge, China‘s smartphone industry is set for a tough 2023 and is not expected to see “meaningful growth until 2024,” a report said on Sunday.

Apple supplier Foxconn‘s key plant in the central city of Zhengzhou has been hit by severe disruptions including worker protests.

All top five smartphone brands, led by Apple with 4.8 million units, experienced sharp declines in November. Vivo, ranked fifth in November, was the worst hit with a 36.2 percent slump to 2.3 million units sold in the month, the report mentioned.

Total smartphone shipments in China are likely to drop 10 percent in 2022 to 285 million units, according to the industry research firm IDC. The country’s smartphone shipments in November nosedived 36 percent (year on year) to 22.2 million units, reports South China Morning Post.

“The Chinese smartphone market is only expected to see full-year growth in 2024,” according to Will Wong, a Singapore-based IDC analyst.

In the first 11 months of 2022, sales were down 23.6 percent compared to the same period in the previous year, according to a report by the China Academy of Information and Communications Technology (CAICT).

[With Inputs from IANS]

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