NEW DELHI: The coronavirus epidemic has taken the world by a storm and has already been detected in more than 50 countries. The extremely contagious virus will allegedly affect the supply of components used in smartphones from China to India up until the second quarter of the year 2020. The outbreak has already led to postponement and cancellation of many global flagship conferences.
Although the process of manufacturing has picked up its pace in India, the country still depends upon China when it comes to components being supplied.
As per the research done by Counterpoint, there will be a shortfall of at least 15% in the smartphone market during January-March i.e. the first quarter. Tarun Pathak, the Associate Director from Counterpoint Research shared the news.
He said, "Whatsoever shipments were to arrive in India have come by February end but the problem will get bigger this month as Chinese manufacturing plants were almost shut last month. We are keeping a close vigil and are updating the industry situation every week,"
The director of the research, Peter Richardson added, "There will be an impact on new devices to be launched in the first half which has facilities in China, as factories will not function properly. Components sourced from China will also be impacted as all factories will resume operation slowly and cautiously.
As the country of China is in a lockdown, the smartphone sales will drop by 30% in the region. This will last until the end of March.
Richardson said, "The negative impact from the supply chain side will last until the end of Q2 minimum."
The life-threatening outbreak is causing the global supply chain to get obstructed as it is affecting the manufacturing of smartphones as well as other consumer electronics. It shall continue to do so if the toll of the people affected keeps rising constantly.