SA forecast: China’s smart machine shipments will fall 30% due to new pneumonia

Strategy Analytics, a third-party analytics firm, predicts that Chinese smartphones will be adversely affected by the outbreak of the new coronavirus. The analysis predicts that shipments from China’s smartphone market will decline by more than 30% in the first quarter of this year.

SA forecast: China's smart machine shipments will fall 30% due to new pneumonia

SA says an outbreak of the new coronavirus will hit China and the global economy in the first half of 2020. The smartphone market will be adversely affected by slowing GDP growth and a slump in consumer spending. At the same time, 70% of the world’s smartphones are made in China, so this will also affect the global smartphone supply chain and manufacturing capacity. Delays in the start of a plant due to isolation or travel restrictions will inevitably lead to temporary labour shortages.

Global smartphone shipments are forecast to be 2% lower than expected in 2020 due to fear and “paralysis” caused by the new coronavirus, according to a new report by Strategy Analytics Wireless Smartphone Strategy (WSS) Service Director Yu. China’s smartphone shipments will fall 5% less than expected, with shipments in the Chinese smartphone market expected to decline by more than 30% in the first quarter of this year.

The new coronavirus is a serious challenge for China’s leading manufacturers such as Huawei, OPPO, Vivo and Xiaomi. Strategy Analytics expects them to be at risk of falling demand in China’s domestic market in the first half of 2020, with expansion in overseas markets also affected by capacity and travel bans.

At the same time, international brands such as Apple are also at risk of running low capacity and falling demand in China.

SA stressed that the above projections are based on the current development of the outbreak and assume 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.