According tomedia reports, a study from market research firm ABI Research predicts that “stagnant supply” combined with “paralysed demand” will lead to a 30 per cent drop in global smartphone production in the first half of the year. The outbreak of the Covid-19 outbreak in China had a critical impact on the global mobile device market, which was followed by large-scale production disruptions and associated supply chain stagnation due to labor shortages and affected logistics, the report said.
Among them, shipments of 5G smartphones in 2020 will be much lower than previously expected, mainly due to supply chain stagnation and weak demand.
“In the short term, 5G devices will be adversely affected,” said David McQueen, director of 5G equipment research at ABI Research. 5G smartphones have gained market demand and have begun to enter the market in large numbers, but the outbreak of new crown pneumonia will have a dampening effect, leading to delayed development and delivery of 5G handsets for the masses. “To stimulate demand, price cuts are expected to be a key driver of boosting 5G smartphone shipments in 2020.
The long-term effects of the current outbreak of new coronary pneumonia are more difficult to assess, the research firm said. While the sharp drop in smartphone production may be temporary, the supply chain will take some time to fully recover, and the impact of the outbreak on consumers’ long-term incomes will reduce their demand for high-end equipment.