China: Sales of smartphones fell by 50% in the first quarter, due to the Corona

Phone sales at China may fall by 50% his first quarter speech Koronaiou.

ΑThis is because many retail stores remain closed for extended periods of time and production has declined due to the rapid spread of Koronaios, according to market researchers.

The new epidemic has killed more than 1100 people and has partially paralyzed China's manufacturing industry. Leading smartphone makers like Huawei have hoped that China's 5G growth plans this year will help revive the world's largest smartphone market after years of declining sales.

In a note last week, research firm Canalys said "Scheduled suppliers' product announcements will be canceled or delayed as major public events are not allowed in China". The note also points out that "Companies will need more time to adjust the schedule for launching their products in China, which will probably slow down the rate of 5G device shipments".

While Canalys predicts that smartphone sales in China will fall by 50% in the first quarter compared to last year, IDC (International Data Corporation) expects a 30% decline. IDC is another technology research company.

Last week, Apple announced plans to extend the suspension of its retail store in China and said it had not yet decided when it would reopen, as Foxconn, which assembles iPhones, struggles to fully recover. operation of its factories. Although Foxconn has received government approval to restart production at its Zhengzhou plant, its most important plant in Shenzhen is still closed.

Without giving further details, Huawei, which is China's largest seller of smartphones, said that the company's production capacity "works normally". Just like other local companies, Huawei also relies on third-party manufacturers for production.

Xiaomi, Huawei and Oppo, three of China's top Android brands, are expected to announce their new flagship devices in the first half. If factories fail to return to full productivity in a timely manner, this will delay companies from bringing their newest products to market, analysts say.

Oppo told Reuters that while the impact of the virus will affect operations in some local factories, "productivity can be effectively ensured" thanks to its factories abroad. Xiaomi, on the other hand, did not respond to requests for comment from the news agency.

"Delays in the reopening of factories and in the return time of the workforce will not only affect shipments to stores, but will also affect product announcement times in the medium and long term."said Will Wong, an analyst at IDC.

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