Mobile phone sales in China Dipped Because of the Corona Virus

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TEMPO.CO, Hong Kong – The Smartphone market in China, the largest in the world, experienced a massive decline due to an outbreak of a new corona-virus.

The supply of mobile phones in China is likely to be below 40 percent in the first quarter of 2020, compared with the same period last year, according to a new report from market research firm IDC, quoted by CNN, 28. February 2020.

This means that Chinese consumers will buy 33 million fewer mobile phones in the first three months of this year, according to Wong, an IDC analyst.

If the IDC to update the forecast a year ago, IDC, a decline of 5 percent in the first quarter of 2020, only expected, Wong said.

“Even with the potential for a recovery in March, it will be difficult to reach the level of the previous year to the first quarter,” he added.

There will be a effect for the delivery of the global mobile phone which is according to estimates of IDC, with a 10.6 per cent in the first half of the year 2020, compared with the same period last year.

Business in China stalled, when the disease slows down, the end of last month. To fight the companies will have to return to normal, because hundreds of millions of people in China are still within the limits of travel.

“Component shortages, factory closures, the mandate of the quarantine, logistics, and travel restrictions create obstacles for smartphone-vendor for the manufacture of mobile phones and introduction of new devices,” said IDC analyst Sangeetika Srivastava in a press release.

“The revenue should be added to the stable, at the end of the year when smartphones 5G was launched, as long as the plague subsided,” Srivastava.

Apple warned investors this month that the outbreak of the corona virus hurts the economy more than previously estimated due to the limitation of how many devices can also be sold in China.

In an update to investors, Apple said it no longer expected to conform to the guidelines of the income given to the last month of the quarter next March.

“The work started back in the country as a whole, but we have returns slowly to its normal condition, as we had expected,” the company said.

Huawei will also be hit very hard. Technology companies in China is the brand’s best-selling smartphone in China, with more than 38 percent of the market share in the last year, according to IDC.

A spokesman for Huawei refused to comment, not to say the company speculate on the market performance.

CNN | IDC