Counterpoint’s industry researchers said that Huawei Technologies Co Ltd is expected to be amongst the worst to witness loss from the collapse of Chinese smartphone sales during the first quarter owing to the outbreak of coronavirus.
Counterpoint, based on Hong Kong is widely known in Asia’s mobile phone and chip industry for its forecasts. It announced in its latest report that the estimates of offline smartphone sales will be cut down by 50% during outbreak and the sales by 20% in the first quarter in China.
From the forecast it predicted that in 2020, the sales worldwide would be year-on-year according to those cuts.
Tom Kang, Counterpoint Research’s Research Director said that they are expecting the virus to be contained by March. However, China would require additional two months to entirely go back to commercial activities. They are expecting negative growth in 2020’s Q1 and Q2 in both China and global smartphone industry.
Flora Tang, Counterpoint analyst said that Vivo and OPPO are likely to be affected by this as they are excessively dependent on offline sales channels. However, Realme, OnePlus, and Xiaomi are less likely to be impacted owing to their overseas sales and online centric business.
Xiaomi Corp said on Thursday that it is expecting a hit in its first quarter sales due to the damage caused by coronavirus outbreak but the market will bounce back by the second and third quarter.
Another research firm earlier this week said that China’s smartphone shipments are likely to drop by 50% in its first quarter, whereas IDC, a third firm said that it will drop by 30%.
Oppo, Huawei, and Xiaomi, all three of China’s leading Android brands are predicted to announce flagship devices during the initial half of this year.