Covid-19: After economic fallout, Apple, Xiaomi show some recovery in China

Apple Inc shipped roughly 2.5 million iPhones to China in March, a slight rebound after one of its worst months in the country ever, according to government data published on Friday.

Smartphone companies are hoping for a strong recovery in demand in China, where the deadly coronavirus is now subsiding, just as it spreads across the world and looks set to trigger a global recession.

Mobile phone shipments in China in March totalled 21 million units, according to data from the China Academy of Information and Communications Technology (CAICT), a government think-tank.

That was a more than three-fold increase from February, yet still down roughly 20% compared with March 2019.

Chinese retailers largely resumed operations by early March, with brick-and-mortar outlets re-opening and e-commerce logistics getting back in gear after the virus and tough containment measures brought much of the economy to a standstill in the first two months.

Apple shipped roughly 500,000 phones in China in February, according to the CAICT.

Many smartphone makers are now hoping that sales in China can cushion declines in overseas markets in coming months.

In its quarterly earnings call, the then-CFO of Xiaomi Corp said that the Chinese market had recovered to roughly 80% of its normal levels.

"The (Chinese) market has entered a full recovery stage, and… has already recovered to 80 to 90% of the normal level," Chief Financial Officer Shou Zi Chew said on an earnings call.

He said sales in China fell in the first quarter due to the economic impact of the virus, but did not say by how much.

Chew said he expected demand for smartphones to be resilient globally even though the virus was spreading to other countries. The company will take a hit in global sales during March and April, he said, but expects to see signs of recovery in May.

"If we take reference from China's experience, I think smartphone demand is resilient," said Chew. "I think it will rebound quickly."

Apple to start online sales in India after govt eases local sourcing rules

Current Affairs

Apple Inc is poised to start online sales of its devices in India within months, a person familiar with the matter said, benefiting from new rules making the world’s fastest-growing smartphone market more attractive to foreign brands.
On Wednesday, India eased rules that forced companies such as Apple to source 30% of their production locally -- a requirement the iPhone maker has been lobbying against for years -- to include exports as part of the requirement.
That rule posed a problem for electronics brands because most of its devices and components are manufactured in China. The government also allowed so-called single brand retailers to set up online stores before physical shops.
With escalating trade tensions damaging ties between the US and China, New Delhi’s latest investment rules could provide a boost to Apple, allowing it to grow sales in the country and possibly help it reduce its high dependency on China by building out an alternative supply chain in India.
The Cupertino, Calif-based device and services company will begin selling its iPhone, iPads and Apple Mac computers online in the coming months. It’s also firming up the Mumbai location of its first company-owned brick & mortar store in India -- likely to open next year -- the person said, asking not to be identified as the details are confidential. Selling online will be a big step forward for Apple in a country where counterfeit products abound in online platforms increasing buyers’ distrust.
Apple didn’t immediately respond to an email seeking comments.

 Some of the phone maker’s older devices are assembled by Taiwanese contractor Wistron Corp...Read More