China Cellphone Export Down in Aug 2016


According to China Customs statistics, during January-August 2016, China exported 790 million cellphone sets, down 1.8% year-on-year (YOY); export value at RMB405.77 billion yuan, down 5.1% YOY; average export price at RMB515.2 yuan per set, down 3.4% YOY. Therein, August export quantity was 98.051 million sets, down 13.9% YOY; value at 49.49 billion yuan, down 2.5% YOY; average price 504.7 yuan per set, up 13.3% YOY.

1. Characteristics of China Cellphone Export in August 2016:

(1) August export quantity reduced by much and price remained low: China cellphone export monthly dropped following a record high in November 2015 and started to rebound in March 2016. This August, the export quantity went down again, recording 98.051 million sets, down 13.9% YOY and 9.7% MOM (month-on-month); average export price was on the decline from 685.1 yuan/set of last October, with August price at 504.7 yuan, up 13.3% YOY but down 1.5% MOM, remaining on the low side. See the chart below:

(2) Ordinary trade increased while processing trade reduced in the export.

(3) Major export markets were Hong Kong, USA and EU, with YOY increase in the quantity to USA.

See the table below:
First 10 Markets of China Cellphone Export in August 2016

(4) Generation-Ⅳ cellphones and the like increased fast in the export.

2. Causes of Cellphone Export Decrease in August 2016:

(1) Cellphone market demand slowed down worldwide.

(2) Cellphone manufacturing development in other countries shrank the export scale from China.

3. Notable Problems:

(1) Apple iPhone7 appears short of innovation, thus Chinese manufacturers may have new business opportunities.

(2) Samsung cellphones have suffered from quality defect, a lesson for Chinese manufacturers to mind.

(3) The EU is pursuing the biggest recovery of unpaid tax on Apple Inc., so it is necessary for Chinese investors in EU to prevent tax risks.
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