Up until 2019, mobile phone company contracts successfully encouraged customers to replace handsets every two years. Since then, upgrade cycles have lengthened. Chinese consumers now hang on to their phones for about 40 months. Combine that with the popularity of Apple smartphones, and it spells trouble for local manufacturers.
Global smartphone shipments are expected to drop 6 per cent to 1.15bn phones this year, the weakest figure for more than a decade, according to Counterpoint Research estimates. China’s economic slowdown is the main reason. Handset sales hit their lowest level in nearly 10 years in the second quarter.
Apple is one of the few brands to buck the trend. Sales increased 7 per cent in the second quarter, with market share reaching more than 17 per cent. The US devices giant shares the top spot with local maker Vivo. A passionate fan base flocks to every iPhone launch.