The tech giants Apple, Huawei and Xiaomi, experienced a huge drop in their smartphone sales last month. The Cupertino-based company sold fewer than 500.000 smartphone devices, a figure of 60% year-over-year. The monthly comparison is even worse, after 2 million iPhones were sold just before the Lunar New Year in the last days of January. This big drop in China's smartphone market is directly related to the rise of the coronavirus.
Apple sold just 494.000 units, while the Chinese Companies overall sales declined, from 12,72 million in February 2019 to 5,85 million a year later. The fall was identified and reported by the China Academy of Information and Communications Technology and is the result of factories shut down all over the country. China, as a measure to protect and reduce the spread of the virus. In addition, the additional measures imposed by government, which have reduced business trips to the country and forced residents to stay in their homes, have contributed to a further decline in sales.
Popular research companies such as IDC and Canalys expect a 40% drop in sales in the first quarter of 2020, as the epidemic hits both demand and the supply chain. In addition, the first two weeks of February were crucial for the Chinese smartphone market. THE Apple closed its stores, which are now open again despite not being fully operational. The company is also reviewing its earnings guidelines as a result of sales decline.
Η threatening a global economic downturn is more than expected and of course the smartphone market will not get away with it.