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Smartphone production to tumble

As the coronavirus continues to spread a new analyst report has suggested that smartphone production could fall by 12 percent this quarter.

The analysis, from Trendforce, has predicted that smartphone production could fall to just 275 million units in the January-March period. That would represent a drop of around 35 million units compared to the 310 million phones made in Q1 2019. According to Trendforce, Apple’s production is expected to fall 10%, while that of Huawei is expected to be 15% lower.

Trendforce said that, "Delayed resumption work and uncertainties in employees' returns will cause the monthly delivery of key components to be postponed, thus affecting the progress of smartphone production."

The virus has already caused a number of factories to close across China and Foxconn, which manufactures Apple's iPhone, has abandoned plans to reopen plants today.

Apple has been forced to close 42 stores in mainland China, which is expected to hurt sales, and another research firm Canalys has suggested that sales of smartphones in China could fall by as much as 50 percent this quarter. It is also warning that the roll-out of 5G devices will be delayed as a result.

With the risk of the virus spreading beyond China growing, the impact on supply chains around the world is set to increase.


Author
Neil Tyler

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