According to the latest report by Counterpoint research, China Single’s Day smartphone sales dropped by 11% YoY in 2022. For the uninitiated, Singles’ Day is an online shopping festival. It is said to be the world’s biggest shopping festival in terms of gross merchandise value (GMV) and revenue, lasting from October 20 to November 11 this year.
Reasons for the decline in smartphone sales
The report adds that the market stayed weak due to the sustained strict COVID-19 policy in the country which is the main cause of this decline. “Against the backdrop of sluggish demand amid macroeconomic headwinds, platforms declined to reveal their 2022 Singles’ Day sales performance in detail,” adds the report.
Promotions by various brands
The report reveals that Apple’s promotions were the biggest highlight of the festival this year. Apple announced its participation on its official WeChat account and the discount on the iPhone14 was the biggest in recent years. The final price of the iPhone14 this year was around RMB 5,298, lower than the RMB 5,699 for the iPhone13 during last year’s festival. The stronger promotions were effective in boosting sales of the iPhone 14, which were performing weaker than the model’s predecessor.
On the other hand, Chinese brands Xiaomi and OnePlus offered bigger discounts than others to benefit from the rising online traffic. Xiaomi’s sales rose on a weekly basis but still dropped around 17% from last year’s comparable period. Xiaomi offered up to RMB 1,300 (or ~$180) off on its Mi12 series. Along with this, Xiaomi also teamed up with Tmall and JD.com to offer additional discounts for e-commerce membership or on every RMB 300.
“Most Android OEMs did not update their killer product lines to benefit from the Singles’ Day rising traffic. OPPO’s Reno 9, vivo’s X90 and HONOR’s 80 will launch in late November, so it can be expected that these new models will lift sales in Q4”, mentioned the report.
Reasons for the decline in smartphone sales
The report adds that the market stayed weak due to the sustained strict COVID-19 policy in the country which is the main cause of this decline. “Against the backdrop of sluggish demand amid macroeconomic headwinds, platforms declined to reveal their 2022 Singles’ Day sales performance in detail,” adds the report.
Promotions by various brands
The report reveals that Apple’s promotions were the biggest highlight of the festival this year. Apple announced its participation on its official WeChat account and the discount on the iPhone14 was the biggest in recent years. The final price of the iPhone14 this year was around RMB 5,298, lower than the RMB 5,699 for the iPhone13 during last year’s festival. The stronger promotions were effective in boosting sales of the iPhone 14, which were performing weaker than the model’s predecessor.
On the other hand, Chinese brands Xiaomi and OnePlus offered bigger discounts than others to benefit from the rising online traffic. Xiaomi’s sales rose on a weekly basis but still dropped around 17% from last year’s comparable period. Xiaomi offered up to RMB 1,300 (or ~$180) off on its Mi12 series. Along with this, Xiaomi also teamed up with Tmall and JD.com to offer additional discounts for e-commerce membership or on every RMB 300.
“Most Android OEMs did not update their killer product lines to benefit from the Singles’ Day rising traffic. OPPO’s Reno 9, vivo’s X90 and HONOR’s 80 will launch in late November, so it can be expected that these new models will lift sales in Q4”, mentioned the report.
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