China’s Smartphone Sales Predicted To Fall By 30-50% in Q1, 2020

039;s 7Fresh chain in Yizhuang town Beijing on Feb 8 2020

China's smartphone sales may plunge by as much as 50 percent in the first quarter, as many retail shops have closed for an extended period and production has yet to fully resume due to the fast spread of a new coronavirus, according to research reports.

Chinese smartphone manufacturers such as Huawei had hoped that the rapid development of 5G in China this year would help the world's largest smartphone market rebound after years of decline in overall sales.

However, the virus outbreak affected China's manufacturing industry and indirectly affected the 5G industry associated with smartphones.

Researchers at Canalys report that the scheduled suppliers, the launch of new products will be cancelled or postponed. IDC forecasts a 30 percent drop. Foxconn, the main iPhone assembler, is also working to fully restore the factory.

Huawei, China's largest smartphone seller, said its manufacturing capacity is "working normally" without specifying more. Like many other local counterparts, Huawei's production also relies on third-party manufacturers.

According to analysts, factories must resume production to their full capacity without delay, as this could hamper brands' ability to make their latest products available in the market.

Xiaomi, Huawei and Oppo, three of China's leading Android brands, are expected to announce flagship devices in the first half.

Xiaomi did not respond to requests for comments. IDC analyst, Will Wong, also further added that "the delays in reopening factories and the labor return time will not only affect shipments to stores, it will also affect the product launch times in the mid- and long-term".

Marketing activities relating to new product launches also are being curtailed. Samsung, for instance, has its main production base located in Vietnam, which means its Q1 numbers are only expected to dip by 3 percent compared to the previous TrendForce forecast, to a grand total of 71.5 million units.

A research firm, TrendForce, predicted that smartphone production in the first quarter of 2020 can fall down by 12% because of the Coronavirus outbreak. In contrast, Huawei's production prognosis for the January - March 2020 window now sits at 42.5 million units, down 15 percent from initial expectations. Similarly, production forecasts for Oppo and Vivo were revised to 2.4 million and 1.7 million units, respectively.



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