China's Q1 smartphone sales can be halved due to coronavirus

Daniel Fowler
February 12, 2020

Smartphone sales in China are expected to drop by as much as an alarming 50 percent in Q1 2020, given that several retail stores have remained closed for a long time.

In point of fact, latest research reports came forth only a couple of days after Huawei, the world's largest telco gear manufacturer, had forecasted a rebound in the world's largest smartphone market following its rollout of fifth-generation network services.

Mr Kong Liang, deputy director at the Animal Husbandry and Veterinary Bureau of the Ministry of Agriculture and Rural Affairs, said the coronavirus outbreak has disrupted the delivery of vital feed and veterinary medicine supplies, and also delayed the return of agricultural workers to farms.

Canalys said in a report last week: "Given that large-scale public events are not held in China (to control the epidemic), manufacturers" planned product launches will be canceled or postponed.

Also Read: Chinese Smartphone Market Has A Year-On-Year Decrease Of 6.2%.

Apple Inc last week announced the extension of closing retail stores in China, while Foxconn, which builds iPhone, is not yet able to fully restore the work of their factories. Huawei, China's largest smartphone supplier, says its production was "normal" but did not elaborate.

China smartphone market sees decline in 2019 the coronavirus to affect 2020

With most of its server production concentrated at Wistron's Guangdong plant, Wiwynn has also suffered setbacks amid the local government's efforts to contain the virus, it reported.

If factories cannot resume production to full capacity on time, this could delay brands' ability to bring their newest products to market, analysts said.

Oppo told Reuters that while the impact of the virus will affect operations in some local factories, "manufacturing capacity can be effectively guaranteed" thanks to its overseas plants. Xiaomi did not respond to relevant media comment.

The research firm Canalys said it expects smartphone sales to be half of what they were this time a year ago. It will also affect the product launch times in the mid- and long-term'. The research firm readjusted iPhone production by 10 percent to 41 million units, while Huawei's production forecast was revised down to by 15 percent to 42.5 million units.

South Korean smartphone maker Samsung will be least affected by the virus outbreak because its main production base is in Vietnam. The company lowered its production forecast by only 3% to 71.5 million units.

United States charges four Chinese military 'hackers'
Since then, as well, hotels giant Marriott lost data on some 500 million global customers to hackers believed to be Chinese. "The Chinese Communist Party will leave no stone unturned in its effort to steal and exploit American data", Sasse said .

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