China’s first-quarter smartphone market seriously affected by the coronavirus

China’s first-quarter smartphone market seriously affected by the coronavirus
The coronavirus outbreak, which has killed more than 900 people and has been paralysing China’s factories since early January, continues to impact the world’s second largest economy and global supply chains.

According to AppleInsider, a recent analysis, done by research company Canalys, predicts that the closed facilities and stores, as well as the delayed launches will affect Chinese smartphone sales by as much as 50%. This is a cumulative result of recent situations caused partly by the deadly virus’ outbreak.

At the moment, citizens are asked to refrain from major public events, giving manufacturers no other options than to cancel or delay their product launches in the country, states Canalys. Vendors will need time to change their product launch roadmaps and such a situation will negatively impact 5G shipments.

Canalys says that companies like Huawei had hoped China’s 5G rollout plans would help them increase their sales. Xiaomi could also be affected by the delay in manufacturing and consequently the launch of new devices. Meanwhile, one of Apple’s main suppliers, Foxconn, is still struggling to open doors and resume production to full capacity, as its major plant in Shenzhen remains unopened.

According to Reuters, Samsung Electronics Co. is the least affected by the virus outbreak, as its main factories are in Vietnam, and its production forecast is lowered by just 3%.


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