The demand for smartphones in China may fall due to the fall of the country's stock market
For the first time in six years, demand for smartphones in China has decreased by 4%. Jeff Pu, Yuanta analyst, believes that this is due not so much to a weakening economy as to a high level of penetration - ninety percent of residents of large cities already have a smartphone. The collapse of the Chinese stock market may cause a further decline in demand, it has already affected the capitalization of a number of smartphone manufacturers and component suppliers, Vedomosti writes .
In June 2015, the Chinese stock market reached its peak over the past seven years, then collapsed by 37%. The reason could be a report by journalist Wang Xiaolu , who works for Caijing, China's online business media. Shares of the Chinese manufacturer of cases and the supplier of built-in cameras for smartphones Q Technology fell by 60%. The trend has spread to suppliers of products from other countries - the capitalization of the Taiwanese chip maker Novatek has decreased by a third.
About thirty percent of Apple’s revenue comes from the world's largest market, China. Gartner analyst Jane Zhang believes that the company's business will suffer, but Tim Cook does not agree with this assessment: according to him, sales of the company grew in July and August despite the fall in the stock market. Nevertheless, the company's shares for three months fell by 13%.
Shares of Apple suppliers from Korea and Japan LG Display and Japan Display fell by 20%. Another supplier of Apple, the company Murata Manufactoring, is waiting for an increase in the sale of components for smartphones manufactured in China, one and a half times in 2015, and the adoption of 4G in the country is among the favorable factors.
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In August, there was a sharp weakening of the yuan. Apple will have to raise prices or accept lower margins. Suppliers of Apple devaluation will be beneficial, since they sell products for dollars, and pay wages in yuan. For large producers like Huawei , a weaker currency will help strengthen its position in foreign markets. For those companies that spend dollars on production, and products are oriented towards the domestic market, the trend is not profitable.
In June 2015, the Chinese stock market reached its peak over the past seven years, then collapsed by 37%. The reason could be a report by journalist Wang Xiaolu , who works for Caijing, China's online business media. Shares of the Chinese manufacturer of cases and the supplier of built-in cameras for smartphones Q Technology fell by 60%. The trend has spread to suppliers of products from other countries - the capitalization of the Taiwanese chip maker Novatek has decreased by a third.
About thirty percent of Apple’s revenue comes from the world's largest market, China. Gartner analyst Jane Zhang believes that the company's business will suffer, but Tim Cook does not agree with this assessment: according to him, sales of the company grew in July and August despite the fall in the stock market. Nevertheless, the company's shares for three months fell by 13%.
Shares of Apple suppliers from Korea and Japan LG Display and Japan Display fell by 20%. Another supplier of Apple, the company Murata Manufactoring, is waiting for an increase in the sale of components for smartphones manufactured in China, one and a half times in 2015, and the adoption of 4G in the country is among the favorable factors.
')
In August, there was a sharp weakening of the yuan. Apple will have to raise prices or accept lower margins. Suppliers of Apple devaluation will be beneficial, since they sell products for dollars, and pay wages in yuan. For large producers like Huawei , a weaker currency will help strengthen its position in foreign markets. For those companies that spend dollars on production, and products are oriented towards the domestic market, the trend is not profitable.
Source: https://habr.com/ru/post/294102/
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