Could European Economic Recession Help Or Bust Cheap Cell Phone Industry?
The world is definitely struggling financially.
At the end of 2010 it was discovered that Greece’s public debt was 120% larger than its GDP, resulting in incredibly hard financial measures. At the end of 2011 Italy announced the same position saying that it was 1.9 trillion Euros in financial trouble.
The economy, and debt, of Italy was so large that it wasn’t possible to eject Italy from the Eurozone without the collapse of the Euro.
With Europe now in turmoil these day there are signs that China’s slowdown could possibly be faster than anybody would really like.
All this means more tougher times to the retail industry ahead, but think about the electronics sector, in particular people who sell China mobile phones?
The outlook is surprisingly good.
Sales of China mobile phones happen to be dropping in developed markets for decades. Most people had already bought their cheap phone and were either very pleased with it or were seeking to upgrade to an Android smart phone.
Developing markets were the actual powerhouses behind the China mobile phone market with sales in Russia, Brazil, India and many 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 inside the sales of China mobile phones inside the developed world in the near future as individuals need to replace their old phone but cannot afford the data plan and outright cost of a smartphone.
That doesn’t mean there won’t be added challenges though.
Reports appearing out of India (a major market for Shanzhai unlocked phones) declare that the market there is consolidating with smaller phone sellers (who simply re-badge OEM phones) being pushed out by larger brands who increase the value of their phones before selling them on customers.
This is indicative of the kinds of changes the world will be dealing with soon and so anybody selling OEM phones might attempt to add value to it, either by offering the phone with a larger Facts, includingn music downloads or some other incentive too keep customers loyal and ever coming back.
Is the China mobile phone market in danger? Early indications would appear to be no. But it would be wise to start looking at solutions to add value to your items to build your customers feel like you are providing them with something a little bit more than the minimum.
Come to iSourceChina for the latest Qwerty phones online.
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