As the coronavirus will affect the production of smartphones in 2020

An outbreak of a novel coronavirus in 2020 has touched almost every industry. In particular, the first quarter of the new year promises to be challenging for the leading smartphone manufacturers.

Research company TrendForce has lowered its forecast for the global mobile phone production, according to Forbes.

This figure fell to five-year low, reaching 12%. This means that the number of smartphones manufactured during the first quarter of 2020 will decrease by 275 million units. Earlier, analysts predicted the reduction in the rate of production of smartphones by 10%.

Delays in the restoration of the full functioning of the factories, the control of population and, consequently, the uncertainty regarding the return of employees to work will lead to the fact that the volume of monthly deliveries of components for phones will be significantly reduced. This factor will harm the global smartphone manufacturers.

What happens next depends on the number of workers who either return or not return to their jobs, as well as the rates of movement of goods through customs. Before the New year according to the lunar calendar, there was a shortage of active and passive parts for smartphone camera modules, according to experts TrendForce.

Coronavirus in 2020: the epidemic from China threatens popular brands of smartphones

Among the six leading brands of smartphones is the main production base of the market leader is the company Samsung located in Vietnam. Therefore, for the South Korean tekhgigant the problem of labor shortage is not so significant in comparison with China. In addition, Samsung is only 2% of the domestic Chinese market. According to analysts TrendForce, the company is significantly affected by coronavirus.

However, this company is not all going well. Because, as you know, Samsung buy parts for smartphones in China. The result is the rate of production of devices of this brand in the first quarter of 2020 will be less than 3%, TrendForce predicts.

The biggest stagnation in the production of mobile phones observed from the Chinese brand Huawei. Analysts predict that in the first quarter of this year the company will produce 42.5 million units of smartphones, which is 15% less than previously thought.

Как коронавирус повлияет на производство смартфонов в 2020 году

Как коронавирус повлияет на производство смартфонов в 2020 году

Coronavirus in China: brands of smartphones in the risk / GettyImages

If we talk about Apple, cupertinos tekhgigant will suffer from the slow pace of development of new iPhone in the second half of 2020.

Slowdown in smartphone production will affect the future release of iPhone SE2 (also known as iPhone 9) and reduce our forecast for the first quarter of 2020 to around 10% from 45.5 to 41 million units reported in TrendForce.

Annual forecast of research company are generally optimistic. Analysts say the outbreak of coronavirus caused slow the rate of production of smartphones leading brands. However, the figures for the second quarter of this year will depend on how will develop a coronavirus, and the degree of recovery of the usual mode of supply.

Coronavirus: what is happening in China and the world
The world health organization has assigned a new name to the Chinese 2019 coronavirus-nCoV – COVID-19 (a contraction of “coronavirus disease 2019 – 2019 coronavirus disease”). As of February 12, 2020 the world was 45 183 confirmed cases of infection, of which 1116 – lethal. In particular, 73.8% of all cases of the disease recorded in China’s Hubei province. Outside of China officially installed 451 case in 24 countries. Ukraine has not recorded a single laboratory-confirmed case of infection with the deadly virus.

Author:
Tatiana Panasyuk

Tags:
Smartphones
Coronavirus 2020
Investment
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