Smartphone sales in China drop due to microchip shortages

Poor sales follow robust growth in the first quarter of 2021. Companies like Huawei are struggling because of a US ban. China's hi-tech giant now controls only 4 per cent of the world market.

Beijing (AsiaNews) – Smartphone sales in China fell by about 34 per cent in April compared with the same period last year, this according to a report by the Chinese Academy of Information and Communication Technologies released on Tuesday.

Poor sales follow a robust first quarter, with 237 per cent growth in February alone. Of the 27 million mobile phones sold in April, 78 per cent are compatible with 5G internet technology.

Analysts say lower sales are due to a slowdown in production caused by microchip shortages. The latter are essential for smartphones and other high-tech items, such as computers, electric vehicles, and renewable energy systems.

A company like Huawei is also struggling because of a US ban preventing US companies from selling electronic components to China's hi-tech giant. Washington considers Huawei an intelligence tool of the Chinese government. Due to sanctions, its smartphone sales plummeted.

According to Counterpoint Research Market Monitor, Huawei's share of global sales has been stuck at 4 per cent in the first three months of 2021, half of what they were in the last quarter of 2020 and a fifth of the peak point reached in April-June of last year.

• china
• united states
• smartphone sales
• microchips
• drop
• huawei
• shortages
• us ban