How is Coronavirus Affecting the Smartphone Market?

Coronavirus

The internet and media outlet is filled with news about the latest Coronavirus and its deadly capabilities. First discovered to have originated from Wuhan in China, the virus is contagious (you can catch the latest info on the virus here on Healthtian).

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But not much has been explored about how the virus may affect tech. Well, Technology needs people and Chinese companies have invested a lot in the mobile phone industries. Keeping their workers at home to minimize the spread of the Virus have seen announcements of phones and plans slow down

According to information credited to CounterPoint Research, the Chinese smartphone market for the first quarter will see shipments go down by a whopping 30%.

Chinese smartphones shipment had been estimated to be at about 90 million smartphones in the first quarter but it has been reduced to about 63 million. This may likely be due to fear on the part of consumers and also lack of information or adequate education.

Huawei whose shipments heavily depends on the Chinese market will take the biggest share of the losses with Oppo and Vivo also partaking in it.

Also, the Mobile World Congress 2020 in Barcelona has also felt the impact of the Coronavirus as major companies have withdrawn from participating this year. Intel, Vivo, MediaTek, LG, TCL, Sony, and Amazon have all pulled out of the MWC. The latest to Pull out is Nokia and HMD Global.

Nokia and HMD Global sent out separate press releases from their neighboring offices in Espoo, Finland, confirming the outbreak of the coronavirus Covid-19 and the concern for the health of their employees is the major reason to pull out of the event in Barcelona.

While the health and safety of our employees is our absolute priority, we also recognize that we have a responsibility to the industry and our customers.” Nokia wrote. “In view of this, we have taken the necessary time to evaluate a fast-moving situation, engage with the GSMA and other stakeholders, regularly consult external experts and authorities, and plan to manage risks based on a wide range of scenarios.”

The conclusion of that process is that we believe the prudent decision is to cancel our participation at Mobile World Congress. We want to express our thanks to the GSMA, the governments of China and Spain as well as Catalonia’s Generalitat, and many others who have worked tirelessly to address the challenges resulting from the novel coronavirus, and they have our full support as they move forward.

Rather than meeting customers and stakeholders in Barcelona, Nokia plans to go directly to customers with a series of “Nokia Live” events aimed at showcasing the industry-leading demos and launches scheduled for MWC.

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The press release on the HMD Global website pretty much mirrors that released by Nokia. It also looks like schedules for phones will be moved forward and there might be surplus phones by the end of the first quarter.

GSMA, the organizers of MWC, released a statement earlier this week reassuring that MWC will go as planned, while also confirming that the event will have an attendance of 2,800 exhibitors. But according to a new report coming out of Spain, GSMA is holding a meeting on Friday, February 14, to decide the fate of MWC 2020.

It seems like it may take some time for the smartphone world to get moving again

Source: 1, 2, 3,

Laurence Inyang
Laurence is a computer science graduate, an anime otaku, web designer, curious cat and wordpress lover. He loves writing about smartphones and few other opinions. He is here to give accurate information and also help people with his articles. You can reach him via any of the social media handles.