Will Euro Economic Recession Improve Or Hurt China Mobile Phone Sector?

The world is definitely struggling financially.

At the end of 2010 it was discovered that Greece’s public debt was 120% larger than its GDP, leading to incredibly hard financial measures. At the end of 2011 Italy announced an identical position saying that it was 1.9 trillion Euros in financial trouble.

The economy, and debt, of Italy am large that it wasn’t easy to eject Italy from the Eurozone without the collapse of the Euro.

With Europe now in turmoil now there are signs that China’s slowdown might be faster than anybody want.

All this means more tougher times to the retail industry ahead, but think about the electronics sector, specifically people who sell cheap mobile phones?

The outlook is surprisingly good.

Sales of cheap mobile phones happen to be dropping in developed markets for years. Most people had already bought their cheap phone and were either very pleased with it or were seeking to upgrade to an Android smart phone.

Developing markets were the genuine powerhouses behind the cheap mobile phone market with sales in Russia, Brazil, India and several countries in Eastern Europe surging in front of the UK, the US and countries in The european union.

The only exceptions to this were Italy and Greece where sales of sub 100 USD phones were especially strong.

Essentially it may mean that there is an upturn within the sales of cheap mobile phones within the developed world in the near future as young people need to replace their old phone but can not afford the data plan and outright price of a smartphone.

That doesn’t mean that there won’t be added challenges though.

Reports appearing out of India (a major market for China unlocked phones) suggest that the market there is consolidating with smaller phone sellers (who simply re-badge OEM phones) being pushed out by larger brands who add value to their phones before selling them to customers.

This is indicative of like changes the world will be going through soon and so anybody selling OEM phones might attempt to add value to it, either by offering the phone with a larger SD card, includingn music downloads or some other incentive too keep customers loyal and coming back.

Is the cheap mobile phone market in trouble? Early indications would appear to become no. But it would be wise to start looking at approaches to add value to your items to build your customers feel like you are definitely something a little bit more than the minimum.

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