China's Export of Telephone Apparatus Plunges to $12 Billion in February 2023

China Telephone Apparatus Exports

In February 2023, shipments abroad of telephone apparatus decreased by -28.1% to 157M units, falling for the fifth month in a row after two months of growth. Over the period under review, exports, however, recorded a relatively flat trend pattern. The growth pace was the most rapid in March 2022 when exports increased by 31% month-to-month. The exports peaked at 291M units in September 2022; however, from October 2022 to February 2023, the exports remained at a lower figure.

In value terms, telephone apparatus exports declined notably to $12B (IndexBox estimates) in February 2023. In general, exports continue to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in September 2022 when exports increased by 76% m-o-m. As a result, the exports reached the peak of $23.9B. From October 2022 to February 2023, the growth of the exports remained at a somewhat lower figure.

Exports by Country

The United States (20M units), India (10M units) and Vietnam (6.2M units) were the main destinations of telephone apparatus exports from China, together comprising 24% of total exports. Russia, the United Arab Emirates, Japan, the Netherlands, Mexico, Brazil, Germany, South Korea, the UK and Singapore lagged somewhat behind, together accounting for a further 26%.

From February 2022 to February 2023, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by the United Arab Emirates (with a CAGR of +6.3%), while the other leaders experienced more modest paces of growth.

In value terms, the United States ($3.1B) remains the key foreign market for telephone apparatus exports from China, comprising 26% of total exports. The second position in the ranking was held by Japan ($845M), with a 7.1% share of total exports. It was followed by the Netherlands, with a 4.8% share.

From February 2022 to February 2023, the average monthly growth rate of value to the United States stood at -1.5%. Exports to the other major destinations recorded the following average monthly rates of exports growth: Japan (+4.2% per month) and the Netherlands (-2.3% per month).

Exports by Type

Telephonic or telegraphic switching apparatus (106M units) was the largest type of telephone apparatus exported from China, with a 68% share of total exports. Moreover, telephonic or telegraphic switching apparatus exceeded the volume of the second product type, mobile phones (47M units), twofold. The third position in this ranking was taken by communication apparatus (excluding telephone sets or base stations); machines for the transmission or reception of voice, images or other data (including wired/wireless networks), n.e.c. in item no. 8517.6 (2.7M units), with a 1.7% share.

From February 2022 to February 2023, the average monthly growth rate of the volume of export of telephonic or telegraphic switching apparatus was relatively modest. With regard to the other exported products, the following average monthly rates of growth were recorded: mobile phones (-0.2% per month) and communication apparatus (excluding telephone sets or base stations); machines for the transmission or reception of voice, images or other data (including wired/wireless networks), n.e.c. in item no. 8517.6 (-0.1% per month).

In value terms, mobile phones ($8.7B) remains the largest type of telephone apparatus exported from China, comprising 73% of total exports. The second position in the ranking was taken by telephonic or telegraphic switching apparatus ($3B), with a 25% share of total exports. It was followed by base stations, with a 1.3% share.

From February 2022 to February 2023, the average monthly rate of growth in terms of the export volume of mobile phones amounted to -1.0%. With regard to the other exported products, the following average monthly rates of growth were recorded: telephonic or telegraphic switching apparatus (+0.7% per month) and base stations (-2.6% per month).

Export Prices by Country

In February 2023, the telephone apparatus price stood at $76.3 per unit (FOB, China), reducing by -11.6% against the previous month. Over the period under review, the export price continues to indicate a relatively flat trend pattern. The growth pace was the most rapid in September 2022 an increase of 56% against the previous month. The export price peaked at $86.3 per unit in January 2023, and then shrank in the following month.

There were significant differences in the average prices for the major export markets. In February 2023, the country with the highest price was Japan ($152 per unit), while the average price for exports to India ($9.1 per unit) was amongst the lowest.

From February 2022 to February 2023, the most notable rate of growth in terms of prices was recorded for supplies to South Korea (+4.1%), while the prices for the other major destinations experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform