The outbreak of new coronavirus will influence China and the global economy in the first half of 2020. The smartphone market will be adversely affected by a slowdown in GDP growth and a sharp decline in consumer spending. At the same time, 70% of global smartphones are manufactured in China. Hence, this will also affect the global smartphone supply chain and manufacturing capacity.
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Sui Qian, Director of Service for Strategy Analytics’ Wireless Smartphone Strategy (WSS), recently released an important report. As it states, due to the fear and “paralysis” caused by the new coronavirus, they predict that global smartphone shipments will be 2% below the expectations in 2020. In addition, China’s smartphone shipments will decline by more than 30% in the first quarter of this year. The Chinese economy will suffer and other related economies, such as Japan or the United States, will also be affected.
The new coronavirus has caused severe challenges for leading Chinese manufacturers such as Huawei, OPPO, Vivo, and Xiaomi. Strategy Analytics predicts that in the first half of 2020, they will face the risk of falling demand in China’s domestic market. The expansion of overseas markets will also suffer in terms of production capacity and shipping. Even Apple will face the risk of insufficient production capacity and falling demand in the Chinese market.
Taking into account the development of the new coronavirus, we strongly recommend operators and manufacturers to monitor and plan their activities. If the development of the epidemic in the world cannot be effectively controlled in a short time, the negative impact on the market will further expand and worsen.