• 201 days Could Crypto Overtake Traditional Investment?
  • 206 days Americans Still Quitting Jobs At Record Pace
  • 208 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 211 days Is The Dollar Too Strong?
  • 211 days Big Tech Disappoints Investors on Earnings Calls
  • 212 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 214 days China Is Quietly Trying To Distance Itself From Russia
  • 214 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 218 days Crypto Investors Won Big In 2021
  • 218 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 219 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 221 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 222 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 225 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 226 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 226 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 228 days Are NFTs About To Take Over Gaming?
  • 229 days Europe’s Economy Is On The Brink As Putin’s War Escalates
  • 232 days What’s Causing Inflation In The United States?
  • 233 days Intel Joins Russian Exodus as Chip Shortage Digs In
U.S. Wage Growth Under Threat As Inflation Hits 40-Year High

U.S. Wage Growth Under Threat As Inflation Hits 40-Year High

The U.S economy continues producing…

Is The Dollar Too Strong?

Is The Dollar Too Strong?

The U.S. dollar has been…

  1. Home
  2. Markets
  3. Economy

China's Economic Recovery Remains Tepid

China Economy

Smartphone shipment data from China suggests consumers are weighing on overall economic growth, reducing the odds of a "V-shaped" recovery.

Smartphone shipments in the world's second-largest economy fell 16% Y/Y in June, according to China Academy of Information and Communications Technology (CAICT). 

Reuters notes smartphone demand in China "remains lukewarm despite the country's recovery from the coronavirus pandemic."  

After a slump in smartphone shipments in 1Q20, due to virus-related shutdowns across the Asian country, April numbers rebounded and grew 17% annually.

We noted in May that US credit card data showed Apple recorded a "shape decline" in iPhone sales in April. 

While Apple and other top phone manufacturers have yet to publicly release China shipment figures, Nomura's latest report shows iPhone and domestic brands sales in June were underwhelming: 

Overseas-branded smartphone shipments (proxy for iPhones) declined 17% y/y in June at 1.3mn (vs down 16% at 2.8mn in May, up 44% at 3.7mn in April, up 16% at 2.8mn in March). We suspect the month over month shipment declines in May and June reflect in part strong iPhone SE sell in beginning in late March through April. - Nomura  Related: Has Re-Opening The Economy Been Successful?

Nomura also shows domestic brands saw steep declines for June: 

Chinese-branded smartphone shipments declined 17% y/y in June at 26.6mn (vs down 10% in May at 30.2mn, up 15% at 37.3mn in April, down 26% at 18.2mn in March) in part due to a seasonally slower period in demand. 5G shipments were steady and ticked up to 17.5mn (vs ~16mn in April and May).  Apple is obviously not participating in the 5G market growth just yet. - Nomura

The continued decline in smartphone shipments in China is a reflection of an economic recovery that is not a "V-shaped" as consumers are less willing to splurge on expensive phones. 

Weak consumer sentiment in China cast doubt over an economic revival in the second quarter, as deterioration in consumption should weigh on overall economic growth through summer. 

By Zerohedge.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment