How does the new Coronavirus affect the smartphone market? Chinese shipments may drop by 5%

The outbreak of the new coronavirus will impact the smartphone market in the first half of 2020. At the same time, 70% of global smartphones are manufactured in China, so this will also affect the global smartphone supply chain and manufacturing capacity. Delays in plant start-ups due to isolation or travel restrictions will inevitably lead to temporary labor shortages.

Sui Qian, director of the service for Strategy Analytics ’Wireless Smartphone Strategy (WSS), recently released a report that states that due to the fear and“ paralysis ”caused by the new coronavirus, we predict that global smartphone shipments will be 2% lower than expected in 2020. China’s smartphone shipments will be reduced by 5% than expected, of which China’s smartphone market shipments will decline by more than 30% in the first quarter of this year.

The new coronavirus has caused severe challenges for leading Chinese manufacturers such as Huawei, OPPO, Vivo, and Xiaomi. Strategy Analytics predicts that in the first half of 2020, they will face the risk of falling demand in China’s domestic market, while the expansion of overseas markets will also be affected by production capacity and travel bans. International brands such as Apple will also suffer from insufficient production capacity and the risk of falling demand in the Chinese market.

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We recommend that semiconductor manufacturers, operators, service and content providers, and interested parties closely monitor their channels and plan ahead to avoid stockpiles.

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The above forecast is based on the current development of the epidemic and the assumption that it can be effectively controlled in late February and March. If the development of the epidemic in China and the world cannot be effectively controlled at the above-mentioned time, the negative impact on the market will further expand and worsen.

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