Demand for Apple’s iPhone wavering in China due to COVID-19

According to research conducted by the China Academy of Information and Communications Technology., demand for smartphones in the country fell by more than a third in April year-over-year. Apple is one of the companies affected as it continues to prepare the iPhone 14 lineup for launch.

Apple iPhone 13

Demand for smartphones fell by more than a third in April, iPhone sales also affected

The Wall Street Journal reports that smartphone shipments fell 34% in April with the first quarter of the year seeing a reduction of 30% to around 86 million units. The decline in shipments can be attributed to the resurgence of COVID-19 in China. The Cupertino tech giant recently revealed that it could lose an estimated $8 billion in earnings this quarter as spending money on luxury items is not the priority of consumers in China.

The WSJ cites the case of one consumer who upgrades her device annually but will continue to use her iPhone 12 Pro Max instead of upgrading to the iPhone 14 as cash flow is tight.

Consumers said they are tightening their purse strings, especially for pricier goods. Zhang Rui, a 43-year-old tech worker in Beijing, said she dropped her plan to buy a new smartphone this year. Ms. Zhang, who uses the iPhone 12 Pro Max and usually updates her device every other year, said she isn’t attracted enough by the new models to pay a high price.

“Cash flow is tight for people due to the pandemic. Are there any smartphone models available that are worth my money?” she said.

iPhone 13 Pro

The dip in demand for smartphones is not just exclusive to China, it can be seen in multiple countries around the globe. In addition, it is expected that the upcoming iPhone 14 lineup will feature a heftier price tag than its predecessors. This year’s iPhones are also going to sport a 48MP rear camera system, which will most likely increase the price even further.

Despite concerns about production, Apple’s iPhone 14 lineup is on track for a September release. Based on previous industry reports, we predict that the upcoming lineup will feature a thicker design and a larger rear-camera bump. In addition, the Pro models will be powered by the next-generation A16 Bionic chip and a new pill + hole-punch camera cutout.

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About the Author

Asma is an editor at iThinkDifferent with a strong focus on social media, Apple news, streaming services, guides, mobile gaming, app reviews, and more. When not blogging, Asma loves to play with her cat, draw, and binge on Netflix shows.

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