In the first half of 2022, domestic phone sales declined by more than 20 percent year-on-year, with the fall likely continuing in July. The market had already started to shrink in 2016 as lack of groundbreaking technical breakthroughs dampened consumer demand for new models. The pandemic since 2020 further hit consumption power. At the same time, US restrictions on chip exports and global supply chain disruption saw phone makers stockpiling chips, leading them to slash prices to clear out their old inventory. After Huawei had to nearly withdraw from the high-end market due to its chip shortages, other Chinese phone makers rushed to grab the gap in the market. While Apple still dominates, Chinese makers are developing smart gadgets and software systems to attract buyers. In India, Chinese phone makers are facing intensive tax investigations as India does not want Chinese brands to dominate the market. Some Chinese brands are tapping the Eastern European market.
Old Version
