What Could Happen With China Phone Market In Euro Economic Downturn?
The world is definitely struggling financially.
Following 2010 it was discovered that Greece’s public debt was 120% larger than its GDP, causing incredibly hard financial measures. Following 2011 Italy announced a similar position saying that it was 1.9 trillion Euros with debt.
The economy, and debt, of Italy am large that it wasn’t easy to eject Italy from the Eurozone devoid of the collapse of the Euro.
With Europe now in turmoil these day there are signs that China’s slowdown might be faster than anybody would love.
All this means more tougher times for the retail industry ahead, but what about the electronics sector, particularly people who sell cheap cell phones?
The outlook is surprisingly good.
Sales of cheap cell phones are actually dropping in developed markets for years. Most people had already bought their cheap phone and were either pleased with it or were aiming to upgrade to a smart phone.
Developing markets were the actual powerhouses behind the cheap cell phone market with sales in Russia, Brazil, India and a lot of countries in Eastern Europe surging before UK, the US and countries in The european union.
The only exceptions to this were Italy and Greece where sales of sub 100 USD phones were especially strong.
Essentially it could mean that there is an upturn in the sales of cheap cell phones in the developed world in the near future as young people need to replace their old phone but cannot afford the data plan and outright tariff of a smartphone.
That doesn’t mean that there won’t be added challenges though.
Reports coming out of India (a major market for Shanzhai unlocked phones) claim that the market there is consolidating with smaller phone sellers (who simply re-badge OEM phones) being pushed out by larger brands who add value to their phones before selling them to customers.
This is indicative of the sorts of changes the world will be experiencing soon and so anybody selling OEM phones might attempt to add value to it, either by supplying the phone with a larger SD card, includingn music downloads or some other incentive too keep customers loyal and ever coming back.
Is the cheap cell phone market having problems? Early indications would appear to get no. But it would be wise to start looking at ways to add value to your items to make your customers feel like you are going for something a little bit more than the least.
Come to iSourceChina for the latest Qwerty phones online.
LG GW525 QWERTY Unlocked Phone Unboxing Video
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