Chinese Smart-Phone Market Growth Plunges Due To Coronavirus Outbreak

CIOReviewIndia Team | Wednesday, 12 February 2020, 04:08 IST

Chinese Smart-phone Market Growth Plunges due to Corona Virus Outbreak

China’s smart-phone sales is expected to decrease up to 50% in the first quarter, as many shops had extended their production due to sudden outbreak of coronavirus. More than 900 people have been killed due to the deadly virus and affected manufacturing industries of China. Huawei one of the top smart-phone vendor expected China’s 5G launch would have helped world’s largest smart-phone market will recover after many years of decreasing sales.

“Vendors’ planned product launches will be cancelled or delayed, given that large public events are not allowed in China,” research firm Canalys said in a note last week.

Smart-phone production will experience decrease by 12% globally in the end of March. TrendForce, a research firm said on Monday.

According to the forecast by IDC, a research firm the tech sector is expected to drop by 30% while another research firm Canalys reported China’s smart-phone shipments to be reduced up to 50% in first quarter.

Apple Inc struggles to resume the work completely and said they still have to finalise opening dates of their retail stores in China as Foxconn, which assembles iPhones.

Government allowed Foxconn on Monday to resume production in a plant established in the city of Zhenghzou, and reopened a major plant in Zhenzhen but rest of the other factories have not been permitted to resume operation.

Huawei revealed that its manufacturing capacity is running normally. But just like other local peers, Huawei also heavily relies on third-party manufacturer for their production.

“If factories cannot resume production to full capacity on time, this could delay brands’ ability to bring their newest products to market,” analyst said.

China’s three top most Android brands such as Xiaomi Corp, Huawei, and Oppo are all about to introduce new devices in the first half.

Thanks to Oppo’s overseas plants due to which manufacturing capacity will not be hampered while impact of virus will affect some local factories operations.

“The delays in reopening factories and the labour return time will not only affect shipments to stores, it will also affect the product launch time in the mid and long-term,” Will Wong, an IDC analyst, said.

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