The pneumonia epidemic caused by the novel coronavirus has had a considerable impact on the Chinese mobile phone industry and since 70% of the world’s smartphones are produced in China, the impact could be felt the world over.
A report from Strategy Analytics indicates that if the spread of the disease can be abated by late February or March of 2020, China’s smartphone shipments would decline by 30% in the first quarter. This could mean that global smartphone shipments in 2020 could be 2% lower than expected, while China’s smartphone shipments will fall 5% short of expectations.
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The report pointed out that Chinese smartphone-makers such as Huawei, OPPO, VIVO and Xiaomi are facing strong headwinds caused by the outbreak of the virus. They are expected to bear noticeable losses in the domestic market in the first half of 2020. Meanwhile, according to The Information, both Huawei and Xiaomi had research entities disrupted in the city of Wuhan, the coronavirus epicenter.
The outbreak will affect foreign enterprises too. In a recent statement Apple CEO Tim Cook said, “We do have some suppliers in the Wuhan area. All of the suppliers there are alternate sources and we’re obviously working on mitigation plans to make up any expected production loss.”
The brand’s retail business in China has also been affected, Apple decided to temporarily close all Apple- stores in mainland China until February 9. Meanwhile, Samsung China’s largest flagship experience store in Shanghai will also be closed.