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Chinese Branded Smartphone Sales Slump

Chinese Smartphone brands Oppo, Realme, Vivo are not only suffering sales slumps in Australia, but their home market is also on track to deliver the poorest sales results in over a decade.

In the first half of the year, smartphone shipments in the world’s largest market sank 21.7% on the year to 134 million, according to the China Academy of Information and Communications Technology among the big losers were Oppo, Xiaomi, and Vivo.

In Australia retailers and carriers have stopped ranging several Chinese smartphone brands due to poor sales and a lack of demand from consumers, they are being replaced by Motorola that is seen as a US brand despite being owned by Chinese brand Lenovo.

Data from Canalys shows substantial declines for big Chinese players Oppo, and Vivo which are brands owned by BBK Electronics.

At the start of COVID Oppo management took ChannelNews to task for questioning the performance of the Realme brand which they claimed at the time was the fastest growing smartphone brand in the world despite several leading research groups IDC and Gartner claiming that “This was not true” one IDC researcher we spoke to said, “which brand”.

According to Canalys research “The full-year China shipment projection could end up well below 300 million units, making for the worst performance since 2012,” the research company said in a report.

About 66% of China’s population has smartphones, according to Dutch research company Newzoo.

The economic disruption caused by China’s zero-COVID policy i playing a role, with buyers not inclined to spend as freely as before.

“The COVID outbreak and the lack of product upgrades in the midrange and high-end segments restrained consumers’ willingness to spend,” research company IDC said.

The impact of the demand slump extends beyond China. Despite the technology-related tensions between Washington and Beijing, Chinese smartphone makers buy electronic components from many companies in the U.S., as well as in Taiwan and Japan, and chipmakers are already starting to see inventories build up.

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