Friday, April 23, 2021
Home Lead Story Due To Outbreak of Coronavirus, China May Decline 20% in Sales of...

Due To Outbreak of Coronavirus, China May Decline 20% in Sales of Smartphones Globally in Q1

As Apple announced a shutdown of its offline stores across China until February 15, the company could face a sales loss of about one million units of iPhones

In the wake of the novel coronavirus outbreak, sales of smartphones in China may decline 20 per cent in the first quarter of this year, according to an estimate by Counterpoint Research on Thursday.

While companies like Huawei, OPPO and Vivo could suffer the most due to this decline, the impact may be limited on smartphone makers like Xiaomi, OnePlus and Realme “as they are more online-centric and overseas-focused”.

The novel coronavirus (COVID-19), which originated in China’s Wuhan area in December 2019 has impacted social and production activities in the country.

To curb the spread of the coronavirus epidemic, the Chinese government issued a strict travel ban on January 24 following which retail and commerce activities slowed sharply, Counterpoint said.

“Demand-wise, we see the market getting impacted severely. We estimate more than a 50 per cent YoY (year-onyear) decline in offline smartphone sales during the lock-down period. Therefore, we have lowered our sales forecast 20 per cent for Q1,” Brady Wang, Associate Director at Counterpoint Research, said in a statment.

“The situation may worsen and we may lower our forecast even more depending on the February sales. The plummet in Q1 is likely to generate a surge in channel inventories and further influence shipments and new products launches through Q2,” Wang said. The coronavirus outbreak has led to the death of over 1,300 people in China.

“Huawei group is likely to suffer as China has accounted for over 60 per cent of its total smartphones sales. OPPO and Vivo will also be impacted because of their greater reliance on offline sales channels. The influence on sales of Xiaomi, OnePlus and Realme will likely be less severe as they are more online-centric and overseas-focused,” Flora Tang, Research Analyst at Counterpoint Research, said.

Coronavirus
In the wake of the novel coronavirus outbreak, sales of smartphones in China may decline 20 per cent in the first quarter of this year, according to an estimate by Counterpoint Research on Thursday. Pixabay

As Apple announced a shutdown of its offline stores across China until February 15, the company could face a sales loss of about one million units of iPhones.

ALSO READ: Tech Giant Apple Joins “Fido Alliance”- An Organistation Committed to Eliminating Passwords

“Apple’s new product development plans will also be affected as engineers from the USA and Taiwan cannot travel to China. The iPhone SE2 set for a late March launch is likely to have troubles in ramping up volume due to the insufficient labour force in Foxconn’s Zhengzhou factory,” Mengmeng Zhang, Research Analyst at Counterpoint Research, added. (IANS)

STAY CONNECTED

19,507FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

Amitabh Bachchan: An Inspiration

By- Khushi Bisht Amitabh Bachchan, also known as Big B, is without a doubt Bollywood's biggest star. The 78-year-old Bollywood megastar has been a hugely...

Does Congress Party Have A Future In Face Of Modi Onslaught?

It was India’s “Grand Old Party.” The Congress Party ruled the country for 55 out of 71 years since independence. But following the party’s...

WHO: An Initiative To Halt The Transmission Of Malaria By 2025

The World Health Organization (WHO) is launching a new initiative that aims to halt the transmission of malaria in 25 more countries by 2025....

Largest Flare Ever Recorded From The Sun’s Nearest Neighbor

Scientists have spotted the largest flare ever recorded from the sun's nearest neighbor, the star Proxima Centauri. Proxima Centauri is a small but mighty...

Understanding Obsessive Compulsive Disorder (OCD)

BY- JAYA CHOUDHARY Many of us have our own unique habits and practices that we follow on a regular basis, such as bringing a lucky...

“Bangladesh: The Price of Freedom”: Relive The Horrors Of Bangladesh Liberation

Ace photographer Raghu Rai was only five years into the profession when the Bangladesh liberation struggle erupted in March 1971. He was dispatched post-haste...

What Makes SARS-CoV-2 More Deadly?

Researchers have found that the cell types, which the SARS-CoV-2 -- the virus behind Covid-19 -- infects, make it more deadly. The study, led...

UI , Auto Zoom And More Will Be Introduced By Google In Meet App

Google has announced to introduce new innovations in its Meet app like a refreshed user interface (UI), autozoom, enhanced reliability features powered by the...

Recent Comments