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Certainly we're expecting sales to slow as smartphone sales plateau, but why is it happening in China first? Is it a leading indicator of slowing growth? After
by rconti 9y ago
Certainly we're expecting sales to slow as smartphone sales plateau, but why is it happening in China first? Is it a leading indicator of slowing growth? After all, smartphone purchases are most decidedly discretionary.
- noir_lord 9y agoIt's possible that the plateau already hit in other economies but was partially masked by people buying new phones because they want the shiny. Dropping half a months income for an incremental increase is very different to dropping 2-3mths.
- dv_dt 9y agoIf there is a utility plateau (i.e. everyone who can justify needing one has one), then one might expect that areas with more disposable income would have more people able to keep purchasing for fashion reasons while nations with tighter margins might continue at more of a replacement rate.
- usrusr 9y ago> but why is it happening in China first? Countries where the 24 month subsidy cycle is dominant will have a lot more inertia that countries where they are rare. Also, China is home to the "cheap flagship" brands, so much of the middle range of the market will already buy close to the technological limit. In countries where the middle of the market is mostly held by the lesser offerings of more premium brands, upgrades to a higher price tier can effectively substitute technological progress (for a while): customers expect a faster phone after n years, and if the technology doesn't deliver many will be willing extend their price range. If it helps. For those who already had a "cheap flagship", it won't.