Economic Slowdown in China Affects the Demand for Smartphones

Published Date : Aug 27, 2015

IDC, a research company recently stated that in the current year, the sale of smartphones is projected to be quite low and sluggish, as against expectations. This has come about at a time when the China market is quite sluggish and will soon be becoming saturated. And will in a way resemble the markets of the West. As per the latest reports of IDC, it is anticipated that the worldwide shipment of smartphones will increase by more than 10% in 2015. This, however depicts a lower than expected figure in May of a little more than 11%. 

The company also stated that there might also be a prominent slowdown in the shipment of smartphones in 2015 with China joining Western Europe and North America in a growth pattern that will be a bit more mature. Several research firms such as Juniper Research, Strategy Analytics, and Gartner have indicated that China is the epicenter for the sluggish demand for smartphones. According to numerous economic analysts, the economy of China seems to be cooling off significantly. 

Despite the sluggish performance of China, it continues to be the focal point when it comes to the global demand for smartphones. In 2014, the total smartphones shipment in China was around 32.2%, and China will continue to be a major sales market despite the slowdown. All through 2019, China is projected to retain its leading position in the overall market for smartphones. 

However, its share is anticipated to come down to around 23% in the next couple of years with strong markets such as India that are expanding robustly. As is evident, China will continue to be a very crucial market in the global economy. But, the shift of focus will be from consumption to exports, with domestic growth becoming sluggish. Also, an analyst pointed to the fact that India has started getting a lot of attention that earlier China used to get.