China’s Smartphone market suffered a massive decline of 45% in February due to the dangerous novel coronavirus outbreak.
Huawei, Apple and Xiaomi the biggest players have suffered the most with a massive drop in sales during February, The Cupertino company with sales of less than 500,000 smartphones which is a decline from 1.27 million in February 2019, which is a huge 60% decline YoY. The monthly comparison of the company has even gone worse, with approximately 2 million iPhones pushed right before the Lunar New Year that takes place in the last days of January.
“While this is very nervous time…we caution that Chinese demand in the March quarter is not the trend, but a “shock event” that we believe will be short-lived,” Wedbush analyst Daniel Ives wrote in a note.
While Apple only shipped 494,000 smartphone units, The overall Chinese companies’ sales dropped from 12.72 million in February 2019 to 5.85 million twelve months later. The decline, reported by the China Academy of Information and Communications Technology, is because of the closing of multiple manufacturing factories across China, combined with the travel advisory of not traveling and asking residents to stay at home.
Research companies like IDC and Canalys are also expecting a 40% drop in sales shipments in Q1 2020 as the dangerous Covid-19 Coronavirus outbreak is hurting both demand and the supply chain. For the Chinese smartphone market the first two weeks of February were critical for where Apple closed most of its stores, which now are open but not with the full capacity.
The threat of a global recession is one and it is also that the global Smartphone market will also be affected by it.