China's Q1 smartphone sales may halve due to coronavirus

039;s 7Fresh chain in Yizhuang town Beijing on Feb 8 2020

039;s 7Fresh chain in Yizhuang town Beijing on Feb 8 2020

The epidemic has affected nearly all industries and as per the reports by a Research firm Canalys (via Reuters), China's smartphone sales may drop down by as much as 50% in the first quarter, because of the fast spread of the Coronavirus.

In point of fact, latest research reports came forth only a couple of days after Huawei, the world's largest telco gear manufacturer, had forecasted a rebound in the world's largest smartphone market following its rollout of fifth-generation network services.

Looking ahead, IDC says that the Chinese smartphone market will face yet another challenge with the Novel Coronavirus outbreak, which will not only affect the overall performance of the market in Q1 2020 but will also have its long-lasting effect throughout 2020.

"Vendors' planned product launches will be canceled or delayed, given that large public events are not allowed in China", research firm Canalys said in a note last week. Oppo sold 6.8 million smartphones, down 20.4 percent year-on-year, and now has a smartphone market share of 17.1 percent in China.

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Huawei, China's largest smartphone seller, said its manufacturing capacity is "working normally" without specifying more. IDC highlights Huawei's Mate 30 Pro strong performance and vivo's successful iQOO brand as the main driving factors for Huawei's and vivo's market performance in 2019. Chinese smartphone manufacturers such as Xiaomi, Huawei and OPPO should release flagship devices in the first half of the year. Xiaomi did not respond to relevant media comment. The research firm readjusted iPhone production by 10 percent to 41 million units, while Huawei's production forecast was revised down to by 15 percent to 42.5 million units.

Among the top six smartphone vendors, No. 1 player Samsung Electronics Company was expected to produce 71.5 million smartphones in the first quarter, a 3 percent fall from its initial forecast, according to TrendForce.

Last month, Apple's suppliers reported more than 100 cases of corona viruses in Henan and Guangdong provinces, where their main production center is located, and therefore announced that the production rate could decline.

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