What Will Happen To China Cell Phone Industry In European Economic Downturn?
The world is definitely struggling financially.
At the conclusion of 2010 it was discovered that Greece’s public debt was 120% larger than its GDP, causing incredibly hard financial measures. At the conclusion of 2011 Italy announced much the same position saying that it was 1.9 trillion Euros in debt.
The economy, and debt, of Italy was so large that it wasn’t possible 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 could possibly be faster than anybody would love.
All this means more tougher times for that retail industry ahead, but what about the electronics sector, specifically people who sell cheap mobile phones?
The outlook is surprisingly good.
Sales of cheap mobile phones happen to be dropping in developed markets for many years. Most people had already bought their cheap phone and were either very pleased with it or were aiming to upgrade to a smartphone.
Developing markets were the true powerhouses behind the cheap mobile phone market with sales in Russia, Brazil, India and lots of countries in Eastern Europe surging prior to the UK, the US and countries in Western Europe.
The only exceptions to this were Italy and Greece where sales of sub 100 USD phones were especially strong.
Essentially it may mean that there is an upturn within the sales of cheap mobile phones within the developed world in the near future as individuals need to replace their old phone but cannot afford the data plan and outright tariff of a smartphone.
That doesn’t mean there won’t be added challenges though.
Reports coming out of India (a major market for Shanzhai cell phones) advise 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 onto customers.
This is indicative of like changes the world will be going through 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 finding its way back.
Is the cheap mobile phone market struggling? Early indications would appear to become no. But it would always be wise to start looking at approaches to add value to your items to you could 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.
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