Smartphone demand in China is decreasing, an analyst report said.
NPD DisplaySearch in its report on 1 October said the decrease in smartphone demand recently is after hitting a peak in March and April of this year.
One of the main reasons for the drop in smartphone demand in China is the strategy of Chinese telecom carriers which stopped providing subsidies to smartphone manufacturers.
The report said telecom carriers in China will gradually stop subsidizing smartphone sets directly and focus more on consumer call charges.
“Chinese smartphone brands are adjusting their strategies to accommodate the latest policy changes from telecom carriers, which could lead to weaker-than-usual sales growth in the second half of the year,” said Terry Yu, small/medium displays and display technology analyst for NPD Display Search.
Coolpad, which has relationships with Chinese telecom carriers, suffers from inventory issues that forced the company to carry out a new distribution strategy in September.
Coolpad plans to introduce three separate and specific brands to reduce the impact of the subsidy adjustments: one for telecom carriers’ own channels, one for the traditional distribution channel, and one for the e-commerce platform.
Meanwhile, Apple iPhone 6 will be available in the Chinese smartphone market from 17 October. This would further decrease demand for Chinese players.