The Chinese smartphone market, which has been growing at a high speed, is facing an unexpected negative impact of the new coronavirus.
IDC and other IT market research companies are predicting that shipments and sales of smartphones will drop sharply due to coronavirus. And that there will be shocking impact the mid- and long-term across supply and distribution.
According to CNBC, IDC analyzed that Chinese Smartphone markets may experience ‘black-and-white’ effects in the first half of this year. Saying that shipments of Smartphones from China will decrease by 30% compared to the same period of last year.
IDC said that the coronavirus crisis has hit the shopping season of Chinese Lunar New Year in late January. And have a negative impact in February and March. Coronavirus is causing uncertainty in product launch plans and supply network and distribution channels in the mid- to long-term.
Another loss for Chinese smartphone maker due to coronavirus
In the wake of the coronavirus, Chinese smartphone shipments and sales will plunge on-year, according to analysts. Canalys also predicted that sales of smartphones in the first quarter will likely drop by 50 percent. Compared to the same period last year.
Canalys released a report on Thursday that said sales of Chinese smartphones could plunge and the 5G market could shrink. The report said that suppliers could reduce their marketing activities. Adding that it is highly likely that shipments of 5G smartphones will fall this year. As it will take time to revise plans to release new products in China. Other experts also agree that China’s 5G launch plan will be delayed.
In fact, Apple’s parts supplier Foxconn has halted its Chinese plant in the aftermath of the coronavirus, raising concerns about supply disruptions. Although it restarted its Zhengzhou plant after the Spring Festival, only 10 percent of its workforce has returned.
Uncertainties in the Chinese market, the second-largest in the world’s economy, could add to the confusion in the global economy beyond China, CNBC noted. Last year, China’s smartphone shipments reached 367 million units. Already marking the 11th consecutive quarter of decline due to market saturation and the slowing economy.