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Home > Tech News > New coronavirus will affect global smartphone supply chain and manufacturing capacity.
New coronavirus will affect global smartphone supply chain and manufacturing capacity.

New coronavirus will affect global smartphone supply chain and manufacturing capacity.

By  Arlan Adolph 2020-02-03 3862 29

[gearbest News] Market analyst Strategy Analytics recently released a report saying that 70% of the world's smartphones are made in China, and the new coronavirus will affect the global smartphone supply chain and manufacturing capacity. At the same time, delays in the opening of factories due to isolation or travel restrictions will inevitably lead to temporary labor shortages. The new coronavirus could affect the global and Chinese smartphone markets.

Chinese smartphone makers such as Huawei, vivo and Xiaomi will be the first to face challenges, and their overseas market expansion will also be affected by capacity and travel bans, Strategy Analytics said. In addition, international brands such as Apple will also be plagued by insufficient production capacity and the risk of declining demand in the Chinese market.

Sui Qian, director of Strategy Analytics wireless smartphone strategy (WSS) services, said that due to the chain reaction caused by the new coronavirus, it is predicted that global smartphone shipments will be 2% lower than expected in 2020, Chinese smartphone shipments will be 5% lower than expected, and its Chinese smartphone market shipments will decline by more than 30% in the first quarter of this year. At the same time, Sui Qian suggested that semiconductor manufacturers, operators, service and content providers and relevant parties should closely monitor their channels and plan ahead to avoid inventory accumulation.

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