China is facing a smartphone production crisis, manufacturing continues to fall rapidly!

According to a report we obtained, China is facing a smartphone production crisis! China’s Ministry of Industry and Information Technology (MIIT) shared a report, the country’s electronics manufacturing industry continues to show a good rebound from January to August, while smartphone manufacturing continues to show a negative trend with a huge year-on-year drop.

China smartphone production falls 7.5% year-on-year!

On October 5, according to the Ministry of Industry and Information Technology (MIIT) on WeChat, smartphone production across China showed a downward trend, down 7.5% year-on-year. This is a significant decline, and there are also declines in export volumes and productivity figures. In terms of production, value added increased by 0.9%, while value added in August increased by 5.8%. In the January-August period, mobile phone production was 935 million units, down 0.9%, smartphone production was 679 million units, down 7.5%. Also microcomputer equipment production was 220 million units, down 21.7% year-on-year. IC (integrated circuit) production reached 221.4 billion units, down 1.4%.

Export value of the electronics industry in China fell 8% year-on-year, and the export delivery value in August fell 5%. Export quantity of notebook computers was 92.68 million units, down 21.7%. Export quantity of smartphones was 478 million units, down 10.9% year-on-year; and the export quantity of integrated circuits was 175.6 billion units, down 6.2%.

When we add all the data together, we can see that China is facing an unending manufacturing/export crisis. Smartphone sales figures continue to fall, but how much have brands been affected? Will there be an increase in product prices? We will see the answers to these questions in the coming days. Don’t forget to leave your thoughts and opinions below and stay tuned to GSMChina for more.

Source: MyDrivers

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