As many of you are aware by now, the coronavirus outbreak has impacted the world in more ways than one. Travel has been affected, people have died, and of course the market has also been affected where companies have been forced to suspend operations to help prevent further spreading of the virus.
Apple themselves have also warned that they might miss their own revenue guidance, but it seems that the Cupertino company isn’t alone. According to analysis by TrendForce, they are suggesting that the coronavirus outbreak could have a very huge negative impact on the smartphone industry as a whole.
They are predicting that smartphone production could shrink by as much as 12% this quarter, and that smartphone shipments for 2020 will be around 1.381 billion units. This represents a 1.3% decline and will be the lowest output since 2016, making it the lowest the industry has seen in the past five years. TrendForce also cautions that it is possible that the numbers could actually be lower than they predict.
That being said, it shouldn’t be surprising that they are predicting this. This is because many smartphone makers rely heavily on China for production. Also, Huawei is one of the world’s largest smartphone makers and they are also based in China. The industry will more than likely recover eventually, but don’t be surprised if it becomes harder to purchase your favorite smartphone this year.