Core Viewpoint - The decline of mobile phone stores in county-level cities reflects a broader shift in consumer behavior and market dynamics, as online sales channels and brand strategies evolve, leaving traditional brick-and-mortar stores struggling to survive [3][4][6][21]. Summary by Sections Market Dynamics - The mobile phone market in county-level cities has seen a significant decline, with many stores reporting drastically reduced sales and foot traffic compared to previous years [4][6]. - Major brands like Apple and Huawei are shifting their focus towards online sales and upscale shopping environments, which diminishes the relevance of small mobile phone stores [6][10]. Sales Performance - The number of mobile phone stores has decreased sharply, with major chains like Dixin Tong reducing their outlets from over 3,000 in 2015 to around 600 by 2023 [6][10]. - Profit margins for mobile phone sales have plummeted, with one store owner noting that the profit per phone has dropped from over 400 yuan to just over 100 yuan [8]. Consumer Behavior - Consumers, particularly younger generations, are increasingly opting for online purchases due to better pricing and transparency, leading to a decline in foot traffic at county-level mobile stores [10][14]. - Middle-aged and elderly consumers, once a primary customer base for these stores, are also shifting towards online shopping, influenced by negative past experiences with local stores [14][15]. Business Adaptation - Many mobile phone stores are diversifying their services, including mobile repairs and second-hand phone sales, as traditional phone sales decline [21][22]. - The second-hand mobile phone market is growing, with projections indicating it could account for 20% of the total market by 2024, providing some relief to struggling stores [22]. Future Outlook - The future of county-level mobile phone stores remains uncertain, as they face competition from both online platforms and larger retail environments, and their ability to innovate and adapt will be crucial for survival [21][22].

Core Viewpoint - The mobile phone retail market, especially in county-level cities, is experiencing a significant decline, with many stores struggling to survive as consumer preferences shift towards online shopping and larger retail spaces [5][10][37]. Group 1: Market Decline - The once-thriving mobile phone market in Chengdu has seen a drastic reduction in foot traffic and sales, with many stores now empty [1][4]. - A mobile store owner recalls that before 2017, business was flourishing, but now sales have plummeted to just a few units per week [2][3]. - Nationwide, many consumers returning home for the holidays notice a stark decline in the number of mobile phone stores, reminiscent of the rapid decline of internet cafes [4][5]. Group 2: Changing Retail Landscape - The traditional mobile phone retail model is collapsing, with major brands reducing their reliance on small mobile stores in favor of more attractive retail environments in shopping malls [10][12]. - Disixtong, a major mobile retail chain, saw its store count drop from over 3,000 in 2015 to around 600 by 2023, indicating a significant contraction in the sector [7][9]. - The profit margins for mobile phone sales have drastically decreased, with one retailer noting a drop from over 400 yuan to just over 100 yuan per device [9][10]. Group 3: Consumer Behavior Shift - Consumers, particularly younger demographics, are increasingly opting for online purchases, leaving county-level mobile stores at a disadvantage due to lack of price competitiveness [10][14]. - Middle-aged and elderly consumers, once a primary customer base for county mobile stores, are now less frequent visitors, often preferring online shopping to avoid being misled by sales tactics [19][20]. - The market for budget smartphones remains strong, with devices priced below 1,000 yuan accounting for a significant portion of sales, yet the low profit margins make it unappealing for local stores [26][27]. Group 4: Adaptation and Diversification - Many county mobile stores are diversifying their offerings, including mobile repairs and second-hand phone sales, as traditional sales decline [32][34]. - The second-hand mobile phone market is growing, projected to account for 20% of the total market by 2024, providing some relief to struggling retailers [34][36]. - However, the sustainability of this growth is uncertain, as competition from online platforms and other channels intensifies [35][36].