Corona Virus Drops Cellphone Production in China
Corona virus (2019-nCov) not only threatens human life, but also threatens the income of smartphone- making companies in China due to the production drop. This incident also made some cellphones becoming rare and hard to find in the market.
This decline was caused by the Chinese government's policy of operating restrictions or closing shops, restaurants and various business lines in China. The policy was taken as a preventative measure for the Chinese government so that the virus does not spread.
As a result, a report from Strategy Analytics reveals smartphone shipments in China will decline 30 percent in the first quarter (Q1) 2020.
The case of the corona virus is expected to slow down GDP growth (gross domestic product) and consumer spending in China. This will affect the country's smartphone market in the first half of 2020.
The report highlights that global smartphone shipments are likely to drop 2 percent due to the corona virus epidemic. Like the decline in global smartphones, China shipments of smartphones in 2020 are expected to fall by two percent. The biggest impact will occur in the first quarter where shipments are expected to drop by 30 percent, Gizmochina wrote .
The report further notes that China produces nearly 70 percent of the world's mobile phones. Therefore, delays in factory operations due to extended New Year holidays and travel and quarantine restrictions will adversely affect global supply and production.
Early signs of product supply shortages can be seen from the mysterious stock of Asus ROG Phone 2 in India today. The report further added that the impact of the corona virus on smartphone shipments in China could be worse if the spread of the virus is not controlled in the next few months.
The corona virus epidemic in China also reverses Xiaomi's plans to launch the Xiaomi Mi 10, which was previously predicted to launch on February 11 in China. In fact, new reports claim that flagship phones made by Xiaomi, Mi 10 Black Shark can be launched online due to the presence of this corona virus.
"The new corona virus outbreak in Wuhan will hit China and the global economy during the first half of 2020. The smartphone market will be adversely affected by slowing economic growth and falling consumer spending," Strategy Analytics Director Linda Sui was quoted as saying by the South China Morning Post .
Leading vendors such as Huawei, Oppo, Vivo, and Xiaomi are expected to be negatively affected by the corona virus in China. A separate report
from Canalys also predicts that the Corona outbreak in China made cellphone shipments in the fourth quarter the lowest reading since the first quarter of 2013.
"Any delay in operations for the plant, with quarantine or travel restrictions, will definitely lead to a temporary shortage of labor supply," Sui said