Outbreak or global mobile phone shipments down China will be 5% lower than expected

February 1 (UPI) — Analytics, an analyst, released a report today saying the new corona virus could affect the global and Chinese smartphone market. The report notes that 70 percent of the world’s smartphones are now made in China, and that the new virus will affect the supply chain and manufacturing capacity of smartphones around the world. At the same time, delays in plant starts due to isolation or travel restrictions will inevitably lead to temporary labour shortages.

Outbreak or global mobile phone shipments down China will be 5% lower than expected

Global smartphone shipments are projected to be 2% lower than expected in 2020 and 5% lower than expected, according to Zhai Zhai, director of services at Strategy Analytics Wireless Smartphone Strategy (WSS), which is expected to be 2% lower than expected. China’s smartphone market shipments will decline by more than 30% in the first quarter of this year.

Chinese manufacturers such as Huawei, OPPO, Vivo and Xiaomi will be the first to face the challenge. Strategy Analytics expects them to be at risk of falling demand in China’s domestic market in the first half of 2020, while expansion in overseas markets will also be affected by capacity and travel bans. International brands such as Apple are also at risk of running low capacity and falling demand in China.

Semiconductor manufacturers, operators, service and content providers, and related parties are advised to closely monitor their channels and plan ahead to avoid inventory build-up.

The report concludes by stressing that the above projections are based on the current development of the outbreak and the assumption that it will be effectively controlled in late February and March. If the development of the epidemic in China and the world cannot be effectively controlled at these times, the negative impact on the market will further expand and worsen.