Strategy Analytics: Chinese Users Postpone Buying New Phones


The epidemic is still erupting around the world. And millions of users worldwide have been affected, including economically. Today, Strategy Analytics released a report called ‘China Smartphone: Consumer Purchase Intentions Post Covid-19’. The report pointed out that although the Chinese are more optimistic than consumers in the United States or Europe that everything can quickly return to normal, the rate of smartphone replacement and the popularity of 5G have undoubtedly slowed down.

chinese users postpone smartphone replacement

37% of people postponed plans to buy new smartphones, while 32% of people postponed upgrading 5G services. Apple users are the most optimistic, with 41% planning to buy new smartphone devices as planned.

Strategy Analytics smartphone research director said: ‘The supply chain and full ecosystem may be back up to speed as we enter Q2, 2020 but it is clear that a significant portion of consumers are NOT yet ready to return to previous patterns and purchase intentions. Operators, vendors and retailers will have to work extra hard to persuade hesitant smartphone owners that new devices and new 5G services are worth making an investment in relative to other priorities.’

chinese users postpone smartphone replacement

Industry chain analysts said that the epidemic has hit the global economy, and many users have less and less wealth. This has caused many people to be forced to postpone replacing their smartphones.

What Do Analysts Say?

Krish Sankar, an analyst at Cowen, a former analyst, once said, ‘The impact of the new coronavirus is spreading from the supply chain to the demand side. Since iPhone and iPad sales will decline, we lower our medium-term expectations.’ Sales will be hit and the service industry may become a bright spot. The so-called service industry includes Apple Music, Apple TV +, iCloud, App Store, etc.

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Analysts bluntly said that the outbreak will allow Apple customers to have a longer period of time to own a smartphone. Also, it will delay the upgrade time. The iPhone replacement cycle will exceed 4 years. In other words, fewer and fewer users can afford themselves to acquire the iPhone in the epidemic.

Also Read: Apple iPhone 12 2020 Production Won’t Be Postponed

We know the supply chain is affected by the virus. So if Apple launches new products in the fall, its production capacity may not keep up. Therefore, Apple’s 5G iPhone may be delayed until the holiday season, and may even be pushed to 2021. According to the worst-case scenario, suppliers may not be able to fully produce by June. So 5G iPhones may not be available until mid-2020.

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