Market Monitor, Issue 02 | 2023

Issue 02 | 2023 allianzgi.com Grassroots Research® Market Monitor Smartphone Sales – China Air-to-Water Heat Pumps – Europe Luxury Jewelry Purchase Intentions Composite Decking Demand – US Agricultural Fertilizer and Farm and Preferences Survey – China Equipment Spending – Brazil Clear Aligners and Scanners – France Smartphone Sales – China Grassroots commissioned interviews Sources have been cutting prices over with smartphone retailers, distributors, the past one to two months to reduce and mobile service operators in China excessive inventory, with discounts of to understand the smartphone sales 30%–50%. This has been successful in outlook and competitive environment. bringing down inventory levels and According to sources, overall smart- for competing with used smartphone phone sales are expected to increase sellers. 53% expect price-cutting levels an average 3% in 1Q 2023 vs. 1Q 2022, to be more aggressive over the next and an average 5% in 1Q 2023 vs.1Q three months, and 47% expect it to stay 2019. Sales are expected to increase the same. One source commented, “The during the summer months and into only way to reduce excess inventory 2H 2023 from the slowdown in 2022, levels is through price cuts. With compe- wireless display, multi-screen interaction, with the highest sales growth in the tition rising from the used smartphone and AI technology. midrange to high-end segment. market, it’s hard to compete with the In addition, 53% of sources said that Indeed, all sources reported that current lowest prices on those nearly-new demand for peripheral products (such inventory levels are on average about older models.” as smartwatches, smart glasses, and four to five months vs. the appropriate Looking ahead, all sources expect to in- VR equipment) is positive in 2023, level of two to three months. 86% expect crease inventory procurement from June with an increase of young customers the inventory situation to improve over 2023 onwards. The most sought-after requesting new product models, such as the next three months, and is expected smartphone models are associated with smartwatches, while 47% said demand to take four to six months to get inven- 5G network support, extra-long battery is neutral as they only appeal to a small tory back to the appropriate level. life, high pixel density, large screens, group of customers. Value. Shared.