Consumer spending drop over China’s economic difficulties

Alex Omenye
Alex Omenye

Consumer spending worldwide is expected to be at its lowest level since 2013 due to China’s economic difficulties.

According to data from Counterpoint Research, the total number of smartphones scheduled to be shipped this year will drop by 6 percent to 1.15 billion units.

According to the firm, economic challenges in China have reduced consumer spending on electronics, causing a downturn that affects the larger Asia-Pacific area.

The US’s declining inflation could not reverse the decline.

“There’s been a decoupling between what’s happening in the economy and consumers buying phones,” according to Jeff Fieldhack, research director for Counterpoint North America.

The £500 billion smartphone market is regarded as a leading indicator of the health of the economy since it shows how much discretionary income individuals have.

When smartphone sales previously reached this level, David Cameron was the prime minister, the iPhone 5 had just been released, and inflation was just under three percent.

Concerns about a broad slowdown in consumer technology have been raised as a result of the slowdown and a similar low in worldwide PC sales.

Over the previous year, sluggish economic development and a general tightening of belts have been attributed to high interest rates, particularly in the UK.

Apple, one of the largest smartphone manufacturers in the world, has begun moving production outside of China due to the country’s market conditions.

In Western nations, Apple’s market share of smartphones increases to more than half from its current third-place position globally.

Share this Article
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *