the Coronavirus has made some deep impact in the world market so far and one of them includes the smartphone market. The business has hit the all-time low and the increasing effect of it has put the total world in fear
Global smartphone shipments have decreased by 38% Year on Year (YoY) in February due to the COVID-19 outbreak, according to market research firm Strategy Analytics.
This has been the worst effect in the smartphone market ever and this situation seems to worsen even more by the coming months until we find a proper cure for this virus.
According to Linda Sui, Director at Strategy Analytics, “Global smartphone shipments tumbled a huge 38 per cent annually from 99.2 million units in the month of February 2019, to 61.8 million in February 2020.”
“Smartphone demand collapsed in Asia last month, due to the Covid-19 outbreak, and this dragged down shipments across the world. Some Asian factories were unable to manufacture smartphones, while many consumers were unable or unwilling to visit retail stores and buy new devices,” Sui said in a statement.
Naturally, China plays a key role in the smartphone both as a manufacturer and as a customer. China manufactures most of the smartphone or is into the distribution of various key parts of a smartphone.
This has disrupted the supply chains and as China is one of the worst affected countries, the smartphone shipments in China has faced an all-time low. Naturally big players like Apple, Huawei, Samsung and others have faced huge problems in this sensitive condition.
“February 2020 saw the biggest fall ever in the history of the worldwide smartphone market. Supply and demand of smartphones plunged in China, slumped across Asia, and slowed in the rest of the world. It is a period the smartphone industry will want to forget,” said Neil Mawston, Executive Director at Strategy Analytics.
According to this firm, despite the signs of recovery in China, in March also the global smartphone shipments will face an all-time low and this should continue in the coming months as well.
“The coronavirus scare has spread to Europe, North America and elsewhere, and hundreds of millions of affluent consumers are in lockdown, unable or unwilling to shop for new devices. The smartphone industry will have to work harder than ever to lift sales in the coming weeks, such as online flash sales or generous discounts on bundling with hot products like smartwatches,” added Yiwen Wu, Senior Analyst at Strategy Analytics.
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