Ahead of Apple’s iPhone launch season, investment bank JP Morgan said a rebound in Chinese mobile device shipments in August suggests an improvement in momentum for the smartphone market.
Seen in a note to the investors AppleInsiderJP Morgan analyst Samik Chatterjee gave an update on Chinese mobile device shipments based on new data from the China Academy of Information and Communications Technology (CAICT). According to CAICT, smartphone shipments rebounded in August after three consecutive months of month-on-month decline.
While domestic Chinese manufacturers increased their shipments by about 18% month-on-month, shipments of smartphones from foreign companies ̵
International brands shipped 2.5 million units across China in August. That’s a whopping 2 million since the coronavirus-related slumps in February caused shipments to drop to 500,000 units.
The total number of smartphone shipments is expected to drop to 26.9 million in August, a decrease of 13% year over year. This suggests that supplies are slowing from the 35% year-over-year decline in July.
Before the launch of Apple’s “iPhone 12”, CAICT announced that shipments of 5G devices rose by 17% month-on-month to a total of 16.2 million units. According to the data, devices with 5G equipment made up 60% of all devices shipped.
JP Morgan China analyst Kevin Zhang said the August year-over-year decline in smartphone sales in China was down to about 8%. According to the study, Chinese domestic brands are now trying to secure more resources in the supply chain amid Huawei’s trade restrictions. Global brands are also launching more mid- to low-end devices, although the increase in volume will likely be put on hold until cheaper 5G chips are made.
Chatterjee predicts that improving smartphone shipments could serve to allay investor concerns about Apple’s slowdown in China. The Cupertino tech giant is expected to release four new iPhone models by October, including a 5.4-inch and 6.1-inch “iPhone 12”, as well as high-end 6.1-inch and 6.7-inch models. Inch “iPhone 12 Pro” devices.