Thursday, September 24, 2020
Home Lead Story Here's Why Coronavirus May Have a Serious impact on Global Smartphone Sales...

Here’s Why Coronavirus May Have a Serious impact on Global Smartphone Sales in Q1

Overall, we think Q1 and Q2 will show negative growth both globally and in China before rebounding

Although factories are beginning to ramp up production slowly, the first quarter smartphone sales are likely to hit by over 20 per cent in China in the first quarter, resulting in global sales going down at least 7 per cent compared to same period last year, a new report said on Thursday.

Foxconn said it is running at about half its normal low-season capacity — this equates to about 25 per cent of full capacity.

“While factories are anxious to ramp-up production, they’re also being careful that labour-intensive work does not rekindle viral outbreaks,” said Peter Richardson, Research Director, Counterpoint Research.

“Our initial expectation was that the virus would be contained within two months and take three further months for things to get back to normal. We now expect Q1 China sales to be down by around 25 per cent compared to the original forecast. This is 18 per cent lower than Q1 last year,” he explained in a statement.

This can worsen if the virus is not contained. “Global sales will also go down 7 per cent compared to the same period last year. Overall, we think Q1 and Q2 will show negative growth both globally and in China before rebounding,” forecast Richardson.

As China gradually recovers from the initial peak of infections, the factory production will gradually return towards normal. However, the reduced capacity is likely to continue into the second quarter.

samsung
Although factories are beginning to ramp up production slowly, the first quarter smartphone sales are likely to hit by over 20 per cent in China in the first quarter, resulting in global sales going down at least 7 per cent compared to same period last year, a new report said on Thursday. Pixabay

“The impact to supply and demand was most acute in China. Supply restrictions have started to show up in other global markets,” said Richardson. “We are now expecting to see some impact to demand in global markets as consumers moderate their economic activity in the face of personal and economic uncertainty,” he added.

According to some offline retailers, they have experienced a 50 per cent drop in sales during the late January period. “There will be impact to new devices to be launched in the first half which have facilities in China, as factories will not function properly. Components sourced from China will also be impacted as all factories will resume operation slowly and cautiously,” said Counterpoint.

ALSO READ: HAF calls on NYC Mayor Bill de Blasio to make Diwali a School Holiday

This will range from displays from Chinese electronic components producers like BOE, CSOT and semiconductors from YMTC and further on. “So the negative impact from the supply chain side will last until end of Q2. The impact of nCoV-19 could be much more severe than many currently expect,” Richardson noted. (IANS)

STAY CONNECTED

19,143FansLike
362FollowersFollow
1,774FollowersFollow

Most Popular

Microsoft Study Shows Pandemic has Increased Feeling of Burnout Among Workers

If you've been feeling overwhelmed at work lately, you are not alone as a new Microsoft study has shown that the pandemic has increased...

Lower Zinc Levels in Blood Linked to Higher Death Risk in Covid Patients: Study

In a major study, researchers have found that having a lower level of zinc in the blood is associated with a poorer outcome in...

Time Magazine List of 100 Most Influential People: Ayushmann Khurrana Among 5 Indians

Indian actor Ayushmann Khurrana is in the Time magazine list of 100 Most Influential People this year. Follow NewsGram on LinkedIn to know what's happening...

Return to Usual Sexual Activity After Heart Attack for Long-Term Survival

Returning to usual levels of sexual activity within a few months after a heart attack is positively associated with long-term survival, say researchers. According to...

Researchers Find Potential New Drug Candidate Against Enterovirus

Some good news in the search for antiviral drugs for hard-to-treat diseases as researchers have identified a potential new drug candidate against enterovirus 71,...

Stroke Patients With Covid-19 Show Increased Inflammation, Death Rate: Researchers

Stroke patients who also have Covid-19 showed increased systemic inflammation, more serious stroke severity and a much higher rate of death, compared to stroke...

Playing Video Games in Childhood Can Improve Working Memory Years Later

In a good news to video game lovers, researchers have found that playing video games as a child can improve working memory years later. The...

Know the Negative Impact of Covid-19 Lockdown on Kids

Children, who appear at a relatively lower risk from Covid-19, are disproportionately harmed by precautions involved with lockdowns, warn researchers. Experts from Oxford University Hospitals...

Recent Comments