How the Coronavirus Outbreak Is Impacting China's Smartphone Market
The coronavirus outbreak that originated in Wuhan, China, has caused a significant disruption to the country's smartphone industry. According to a report by Strategy Analytics, China's smartphone sales may drop by 50% in the first quarter of 2020 compared to the same period last year.
This is due to several factors, such as the lockdown of major cities, the closure of retail stores and factories, the reduced consumer spending and confidence, and the delayed launch of new models. The report estimates that China's smartphone shipments will decline from 91 million units in Q1 2019 to 46 million units in Q1 2020.
The coronavirus outbreak has also affected the global smartphone market, as China is both a major producer and consumer of smartphones. The report predicts that global smartphone shipments will fall by 10% in Q1 2020, the lowest level since 2013. The outbreak has disrupted the supply chain and demand for smartphones in other regions, such as Europe, North America, and Asia-Pacific.
The report suggests that some of the major smartphone vendors that will be hit hard by the outbreak include Huawei, Xiaomi, Oppo, Vivo, and Apple. These vendors rely heavily on the Chinese market for their sales and production. The report expects that these vendors will face inventory issues, component shortages, and lower consumer demand in the coming months.
However, the report also notes that the smartphone market may recover in the second half of 2020, as the outbreak is expected to be contained and controlled by then. The report forecasts that China's smartphone sales will rebound by 23% year-on-year in Q3 2020 and by 10% year-on-year in Q4 2020. The report also anticipates that global smartphone shipments will grow by 5% year-on-year in Q3 2020 and by 8% year-on-year in Q4 2020.
The coronavirus outbreak has posed a major challenge to the smartphone industry, but it may also create some opportunities for innovation and differentiation. The report suggests that some of the trends that may emerge or accelerate in the post-outbreak era include online sales channels, 5G networks and devices, foldable phones, and health-related features.
The coronavirus outbreak has also had a significant impact on the smartphone industry in terms of innovation and development. According to a report by Counterpoint Research, the outbreak has delayed the launch of several new models and features, such as 5G phones, foldable phones, and high-end cameras.
The report states that some of the major smartphone launches that have been postponed or canceled due to the outbreak include the Mobile World Congress 2020, the Huawei P40 series, the Xiaomi Mi 10 series, the Oppo Find X2 series, and the Vivo Apex 2020. The report also notes that some of the smartphone vendors have shifted their launch events online or to other regions to cope with the situation.
The report expects that the smartphone innovation cycle will be disrupted by at least two to three months due to the outbreak. The report warns that this may affect the competitiveness and profitability of the smartphone vendors in the long run. The report advises that the smartphone vendors should focus on enhancing their online presence, optimizing their product portfolio, and strengthening their customer loyalty in the post-outbreak era. ec8f644aee