China’s mobile phone market experienced poor sales in years as device consignments reduced, with the statistics potentially emphasizing further indications of pain for Apple in the largest smartphone market globally. Mobile phone consignments in China amounted 14.51 Million in February—an almost 20% year-on-year fall—as per data released by the CAICT (China Academy of Information and Communications Technology). According to the CAICT, which is an administration-backed research institute, the consignments of smartphones particularly summed up 13.8 Million.
February is normally weak for smartphone sales in China owing to the week-long Lunar New Year holidays and the reality that new phones are launched toward the back-end of the month. But February 2019 was the most awful month for consignments going back to at least 2013, as reported by the CAICT. Xi Wang—Senior Market Analyst at IDC—told to CNBC that the public holidays plus a number of factors counting an economic decelerate in the second-largest economy globally, a drenched smartphone market, and sellers having surplus inventory all played a role in February’s poor performance. Wang further added that smartphone retailers might send a high number of smartphones to vendors in January—which surpasses demand—with the intention of getting a “good beginning” to the year. They will then reduce consignments in February, leaving vendors with lots of supply.
Speaking of the smartphone market of China, in recent time, it was reported that Apple is offering interest-free loans to Chinese customers since the iPhone is too expensive for them. According to The Wall Street Journal, in an attempt to make Apple products more reasonable to Chinese consumers, the tech giant is working with Alipay—Chinese mobile payments network—to provide up to 2 Years of interest-free financing. Customers purchasing products worth at least of 4,000 Yuan worth from Apple will be qualified for interest-free financing that can be compensated in 3, 6, 9, 12, or 24 months.