Smartphone sale nosedives in Pakistan, but high-end buying in China record high
Business
Chinese consumers are boosting the luxury industry too
LAHORE (Web Desk) – Effects of inflation in Pakistan are visible everywhere. Visit a vegetable vendor and you will see people buying in small quantity – barring those using big SUVs. Not to mention the roadside stalls selling fruits, which are mostly deserted except when someone embarks from a car.
However, perhaps the biggest reduction in the number of customers is experienced by places are Hafeez Centre or Hall Road where the retailers spend most of their time waiting for any buyer.
This situation is aptly reflected by the data for the July-May period in 2022-23, showing over 73 per cent decrease in mobile phone imports. Although the state of affairs is more of less the same of all categories of handsets, the high-end smartphones are performing better thanks to the extra money the affluent classes have.
But the new smartphone has become a no-go area for an overwhelming majority as only in exceptional circumstances the ordinary people can reserve money for it. It is ironic to say that the smartphone is now a luxury for most in Pakistan during the Fourth Industrial Revolution era.
At the global level, the smartphone sale witnessed an around 8pc decline in sale during the previous quarter [April-June] thanks to the persistent inflation and reduced purchasing power as meeting basic needs like food and paying for utilities has become the sole priority.
But things aren’t the same for everyone and everywhere. China is an example. Latest data shows that the average consumer spending by Chinese on smartphones has reached a record-high level.
Read more: Chinese boost luxury group Richemont too despite inflation as sales in Americas drop
According to a report the average retail price of smartphones in China was $450 last year and is expected to keep growing this year. However, the number of handsets being sold is on a decline.
So why this increase in average spending when fewer sets are sold? Answer: the high-end smartphones market is still strong and the higher prices are offsetting the reduced number of procured handsets.
This trend is persistent with the figures coming out of the luxury industry as various top luxury brands have seen their sale skyrocketing in China but dipping in traditional markets like North America and Europe.
Read more: Luxury fashion brand: Burberry's quarterly store sales jump 18pc mainly thanks to China
One can safely say that the affluent Chinese are boosting [or perhaps sustaining in the longer run] entities like Apple and Samsung. Not a surprise that everyone is frightened by the economic slowdown in China. Let’s see for how long the high-end consumers sustain the trend.
