China smartphone sales drop 13% during 618 festival as memory costs limit discounts - Reuters
China smartphone sales drop 13% during 618 festival as memory costs limit discounts Reuters
The 618 festival provides a key annual benchmark for consumer spending in China, and memory costs are currently a significant input for smartphone manufacturing.
This indicates a potential weakening in Chinese consumer demand for high-tech goods, alongside persistent supply chain cost pressures in crucial components, affecting global tech markets.
The expectation for smartphone sales growth in China, especially during major shopping festivals, is now recalibrated downwards due to both soft demand and component cost constraints.
- · Used smartphone market
- · Memory chip manufacturers (potentially benefiting from higher prices)
- · Smartphone manufacturers (especially those reliant on the Chinese market)
- · Chinese e-commerce platforms (lower sales volume)
- · Retailers of consumer electronics in China
Reduced revenue and profit margins for smartphone companies due to lower sales volume and higher input costs.
Increased pressure on smartphone manufacturers to innovate or find cost efficiencies to stimulate demand and mitigate memory cost impacts.
Potential ripple effects on the global electronics supply chain, as reduced demand from China could lead to oversupply in other components or increased competition.
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Read at Reuters — Technology (Google News)