On March 21, the China Academy of Information and Communications (CAICT) released a report showing that shipment of smartphones within China declined to 31.8% year-over-year to 14.5 million for the period ending February.
This significant decline can be attributed to the global computer chip shortage which has been affecting the tech and car industry most. Without a doubt, car and smartphone manufactures have been facing slowed production rates due to the shortage. This has resulted to increased car and smartphone prices.
Citing data from CAICT, a state-backed think-tank, smartphone shipment in China, declined from about 21.3 million handsets in February 2021 and 32.4 million in January 2022.
A number of other factors have also contributed to the global computer chip shortage some of the factors include; unexpected factory shutdowns, demand miscalculation and the tensions between world’s leading economies U.S and China have also worsened the chip shortage situation.