Last week, Counterpoint predicted that Chinese OEMs would face a 30 percent decline in the shipments of Smartphones due to the ongoing Coronavirus epidemic. Another report from Digitimes suggests similar statistics. According to the new report, even if the Chinese government manages to control the pandemic by the end of February 2020, it will still instill a 9 percent decline in the overall shipments of smartphones from Chinese manufacturers.
According to Digitimes, consumer demand has also decreased significantly due to the coronavirus situation. Top OEMs like Huawei, Oppo, Vivo, and Xiaomi, were all set to sell off a significant chunk of smartphones during the Chinese New Year period but failed to do so. They are currently sitting on high inventory levels.
Apart from this, MediaTek is also expected to bear the brunt of the virus outbreak. The chipmaker will most likely see a 15 percent decline in its revenue for the first quarter of 2020.
As far as recovering from this set back is concerned, according to analysts, even if the country manages to control the epidemic, OEMs, and Chipmakers are expected to feel the after-effects in the upcoming quarters as well. None of the OEMs have revised their quarterly and yearly targets but it looks like they will have to.