Foreign-made smartphone sales in China are tanking

Shipments of foreign-made smartphones to China dropped by 47.4% in November YoY – or 3.04 million units from 5.769 million units – according to Reuters and others, citing the China Academy of Information and Communications Technology (CAICT).

Apple remains the dominant foreign smartphone maker in China, and this week launched a ‘rare’ four-day promotion in China, cutting prices by up to 500 yuan ($68.50) on its flagship models to boost sales, says the Reuters report.

It also noted that Huawei has emerged as a strong challenger to Apple domestically since it started making high end phones again in 2023 with locally-made chipsets.

Shipments in total, including domestic brands, were down 5.1% year-on-year in November to 29.61 million handsets, apparently.

Meanwhile Reuters and others also report the state is looking to pull some fiscal stimulus levers to revitalise the ‘faltering’ Chinese economy.  It will sharply increase funding from ultra-long treasury bonds in 2025 to spur business investment and launch consumer-boosting initiatives, Yuan Da, deputy secretary-general of National Development and Reform Commission (NDRC) is reported as saying.

Under the programme consumers can trade-in old cars or appliances and buy new ones at a discount, there are also large-scale equipment upgrades for businesses, and households will be eligible for subsidies to buy three cell phones, tablets, smart watches and bracelets, says the report.

Millions of government workers have also apparently been given surprise wage increases this week, ‘people affected by the move said’, in a bid to boost spending.

According to the WSJ, shares of Chinese smartphone makers and home appliances companies surged in Hong Kong following the announcement – noting that Xiaomi rose 6.6%, making it the top performer on the benchmark index.

Global Times meanwhile reported that the NDRC said looking ahead to 2025, China's consumer market is projected to sustain steady growth and in order to boost consumption, and the government will aim to raise residents' incomes, diversify the supply of consumer products and services, identify new consumption growth areas and improve the ‘overall consumption environment.’