Apple becomes the exception in China

 According to experts' predictions, the number of smartphones shipped in the second quarter of 2022 in China will decrease by 20% compared to the same period in 2021. Apple may be the exception.

The new outbreak of the Covid-19 epidemic in China has threatened smartphone sales in the world's largest market. However, Apple is still not much affected, maybe even growth here.

With the number of cases increasing continuously, Shanghai, the most populous city in China, had to blockade to fight Covid-19. However, these measures have adversely affected the supply chain of goods and people's consumption.

The Chinese market is strongly affected

Mr. Neil Mawston, Managing Director at Strategy Analytics, predicts that smartphone shipments in the second quarter of 2022 will drop sharply by 20% compared to the same period in 2021. Specifically, smartphone sales will decline by 12-13% in October. April and May of this year.

However, the number of devices sold in June is likely to prosper thanks to the discount programs after the Covid-19 epidemic. Speaking to CNBC, Neil Shah, vice president of research at Counterpoint Research, said smartphone sales in China would fall by 3-4%. Even if the Covid-19 pandemic continues, this market is expected to decline by 12% compared to the same period last year.

Apple screams at China's ears 1

Loyal users will help Apple stand up to difficulties in the Chinese smartphone market. Photo: Getty Images.

Meanwhile, IDC research director Will Wong said that smartphone market revenue in China will decrease by 3.4% in the second quarter of 2022.

“The first reason comes from the decrease in consumer demand and shopping sentiment due to the Covid-19 pandemic and slow economic growth,” Wong told CNBC. He said disruptions in the supply chain would not have much of an impact as factories work together and the government has experience in mitigating the impact of the pandemic.

In March, Foxconn, Apple's main component supplier, said it had to close its main factory in Shenzhen due to the Covid-19 epidemic. According to CNBC, amid the stressful developments of the pandemic, China has made efforts to keep factories open so as not to disrupt production.

On the other hand, IDC's Will Wong said that the weakening Android phone market is the main reason for the dismal numbers in mobile output in this country. “The Android smartphone business in China is a competitive playground. In which, brands such as Xiaomi, Oppo, and Vivo are racing to launch affordable products to compete for this big piece of cake,” said Neil Mawston.

Apple is the exception

Apple may be the one to suffer the least from the difficult situation in China. According to expert Neil Shah, iPhone shipments in the second quarter of 2022 only decreased by 4-5%. The reason is that this period is not the peak iPhone shopping season, and the new iPhone is only released in the third quarter.

Apple howls in China's ears 2

The reason for the decline in smartphone sales in China is due to the decrease in demand and consumer shopping psychology due to the Covid-19 pandemic. Photo: Getty Images.

In addition, Apple also benefits from Huawei's slowdown in the high-end smartphone segment. The US trade and export ban has severely disrupted Huawei's supply chain, resulting in slow growth and a sharp drop in profits.

Therefore, analyst Will Wong believes that Apple will receive many positive signs in the second quarter of 2022.

Mawston also expects Apple to grow strongly and dominate the smartphone market share in China in 2022. According to him, its loyal users will continue to spend money on upcoming 5G phones. .

In February, Apple just rose to the top of the smartphone market in China. A report by market research firm Counterpoint Research has shown that the company recorded the highest level of revenue in China for the first time in the fourth quarter of 2021. In particular, the iPhone 13 is the key product that helps Apple take the lead in the world's largest market.