Pricing & Plans

Coronavirus Outbreak to Plunge Smartphone Sales in China

  11 Feb 2020        Business
Coronavirus Outbreak to Plunge Smartphone Sales in China

According to several research reports, in the first quarter, China’s market may plunge in terms of smartphone sales by as much as 50%. The lower sales of smartphones is being attributed to the extended period closure of many retail shops and halt in production, which is yet to fully resume due to the spread of coronavirus.

The outbreak that has already claimed 1000 odd lives in China and has also rolled in its manufacturing industry. The virus has affected the market to such extent that its top smartphone vendors Huawei who has 5G rollout plans this year expected to help the world’s largest smartphone market to rebound after falling sales.

Last week, Canalys research firm, noted that the vendors will cancel or delay product launches as large public gatherings are not allowed in China. Vendors have to now change their launch plan, which will likely dampen 5G shipments. However, IDC, another research firm, has forecasts a 30% drop.

Last week, Apple Inc. announced its plans to extend retail store closures without any final opening dates, as it’s which assembling unit, Foxconn, struggles to fully resume work. Huawei has said that its manufacturing capacity is running normally as the company relies heavily on third-party manufacturers for production.

In the first half quarter, China’s three top Android brands, Huawei, Xiaomi Corp, and Oppo are expected to announce flagship devices. Oppo has said that while some operation in the country might get impacted due to the virus but its production won’t be hampered due to manufacturing units overseas.

Will Wong, an IDC analyst, has said that the delays in factories reopening and the labour return time will affect both shipments to stores and the product launch times in the mid- and long-term.