Is Gree 'disbanding' its smartphone division?

Gree Electric, one of China's largest air conditioner manufacturers, is reportedly planning to disband its smartphone division after seven years due to reduced consumer spending on electronic devices. At its peak, the core smartphone division employed 100 people in Shenzhen, according to the Jiemian news site.

In response to questions about the closure of the division, Gree stated that research and development for Gree smartphones is "continuing".

Chairman Gree Dong Mingzhu. (Photo: SCMP)

Gree announced its smartphone ambitions in 2015. At the time, Chairwoman Dong Mingzhu, one of China's most successful female entrepreneurs, asserted that Gree would "easily surpass" Xiaomi in the mobile market.

However, Gree's phone sparked controversy upon its launch because the opening image during startup was a portrait of Ms. Dong. This executive also boasted at a June 2022 shareholder meeting that Gree smartphones were as good as Apple's iPhones.

However, Gree smartphones remain unpopular and lag far behind the most popular Chinese brands such as Oppo, Vivo, Huawei, and Xiaomi. The website linking to this Gree product is no longer accessible, and the main page only lists two smartphone models. Gree hasn't updated its smartphone division's WeChat account since April 2020, nor did it mention its phone business in its 2022 annual report.

Rumors of Gree closing its smartphone division emerged amid turmoil in the Chinese mobile market. Domestic mobile phone shipments fell 11% in the first quarter, a record low in a decade, according to research firm Canalys. The report indicated that only 67.6 million smartphones were shipped.

Another report from Counterpoint last month also estimated that Chinese smartphone sales fell 5% in the first three months of the year, to their lowest level since 2014.

Although China's post-Covid-19 economy is showing signs of recovery, consumer spending has not yet rebounded enough to boost smartphone sales, according to Canalys analysts. The pandemic has affected consumer behavior in the medium to long term, with people tending to only purchase essential goods and services.

According to IDC, Oppo is the number one smartphone manufacturer in China with a 19.6% market share, but Canalys claims that this position belongs to Apple with a 20% market share. In February, Apple lowered the price of the iPhone 14 to stimulate demand.

The global smartphone market is also struggling as users are more reluctant to upgrade. Global smartphone sales fell 13% in the first quarter to 269.8 million devices, according to Canalys. Samsung and Apple maintained the top two positions with a combined market share of 43%. Xiaomi, Oppo, and Vivo completed the top 5 with a combined market share of 29%.

(According to SCMP)

Oppo unexpectedly closes its chip design division . The Chinese phone manufacturer Oppo announced it will close its chip design division due to uncertainties in the global economy and the smartphone market.

Source: https://vietnamnet.vn/gree-giai-tan-bo-phan-smartphone-2145767.html