The latest outbreak of coronavirus infection in China could drastically hit smartphone sales in that country, Report informs with reference to CNBC.
Sales in the second quarter may fall by 20% in annual terms, says Neil Mawston, chief executive of Strategy Analytics.
Counterpoint Research partner Neil Shah expects a more moderate decline in sales in April and May - by 12-13%. In his opinion, in June the number of smartphones sold could recover sharply against the backdrop of sales and the retreat of the pandemic, and if this happens, the quarterly decline will be only 3-4%.
China has been recording more than 20,000 new infections per day for several days in a row. Most of the new cases are in Shanghai, where strict restrictive measures have been put in place that has a negative impact on logistics and consumer sentiment.
Shipments of smartphones in China in April-June may be reduced by 3.4% in annual terms, predicts Will Wong from IDC.
The expert noted that the decline in sales will mainly affect smartphones on the Android operating system. Mawston of Strategy Analytics agrees, pointing to fierce competition in this segment, with big companies such as Xiaomi, Oppo, and Vivo vying for market shares.
Apple expects a more moderate decline in sales, and it will be caused mainly by seasonal reasons, as the company usually introduces its flagship models towards the end of the year. According to the results of the current year, Apple's sales in China may well grow, Mawston says.