China Remained Dominant Smartphone, Laptop Imports Source in October, Says DataWebÂ
October imports of Chinese smartphones and laptops jumped by double digits sequentially from September, said newly released Census Bureau data accessed through the International Trade Commission’s DataWeb tool. They’re two of the largest consumer tech product classifications facing 15 percent Section 301 List 4B tariff exposure that starts Sunday.
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The October increases seemed more in keeping with historical holiday-selling trends than U.S. importers’ fervor to beat the List 4B duties. If any frenzied Chinese supply-chain activity or alternative sourcing took place in the weeks leading up to the List 4B deadline, those trends would become evident in DataWeb's November import statistics due out CES week in January and in the December figures to be released in early February.
October smartphone imports from all countries classified under the 8517.12.00 tariff subheading jumped 12.9 percent from September to 22.6 million handsets, said DataWeb. The unit volume was down 8.1 percent from the 24.5 million smartphones imported in October 2018, when shipments climbed 17.8 percent from a month earlier to feed holiday demand.
Chinese smartphone imports in October increased 13.2 percent from September to 17.9 million handsets, said DataWeb. Chinese shipments were down 10.9 percent from the 20.1 million units imported in October 2018, when imports were up 22.3 percent from September 2018, again in line with historical holiday trends and when the threat of tariffs on Chinese smartphones wasn't in play.
The List 4A tariffs that took effect Sept. 1 sent China’s share of October TV imports plunging to 27.6% from 55 percent a year earlier (see 1912060006), but no such China exodus was evident in smartphone imports through October. China was 79.5 percent of U.S. smartphone unit imports in October, said DataWeb, down slightly from its 82 percent share in the same month a year earlier but a slight increase from its 79.2 percent share in September.
Vietnam bears watching as a country of origin in future months if the List 4B tariffs take effect on smartphones and stay in place for a sustained period. Vietnam shipped 3.8 million smartphones to the U.S. in October, a 13.2 percent sequential increase from September and a 38.3 percent jump from October 2018, said DataWeb. Vietnam was 16.7 percent of smartphone unit imports to the U.S. in October, unchanged from its September share, but up 5.6 points of share from October 2018.
The U.S. imported 12.6 million laptops in October under the 8471.30.01 subheading, which also includes tablets, said DataWeb. That was a 48.6 percent sequential increase from September and a 5 percent year-over-year rise from October 2018.
October Chinese laptop unit imports increased 47.4 percent sequentially from September to 11.6 million, consistent, again, with the year-earlier rate of growth between September and October to feed holiday demand, said DataWeb. China remained the dominant supplier of laptop imports to the U.S. Its October share was 92 percent, steady compared with its 92.8 percent share in September and 93 percent hold in August, plus 3.3 points higher than its 88.7 percent share in October 2018.
Vietnam and Taiwan are the countries to watch if China loses laptop share after the List 4B tariffs take effect. Vietnam shipped 79.3 percent more laptops to the U.S. in October than September, but 30.1 percent fewer than in October 2018, said DataWeb. Its October share was 5.1 percent, on par with its August share and a 0.9-point improvement from September, but 2.6 points lower than October 2018. Taiwanese laptop imports to the U.S. in October increased 43.3 percent from September and 42.6 percent from October 2018, but its share remained below 2 percent.