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IDC: Global phone shipments to drop 10.6% in 1H 2020 due to Covid-19 outbreak

By Cookie Monster - on 1 Mar 2020, 12:02pm

IDC: Global phone shipments to drop 10.6% in 1H 2020 due to Covid-19 outbreak

The Apple iPhone 11.

The coronavirus outbreak is likely to stress worldwide phone shipments this year according to the International Data Corporation (IDC). 

IDC initially forecasted that the global smartphone market would rebound this year, but the Covid-19 outbreak could lead to a 10.6% decline year over year in the first half of 2020. The Chinese market will take the biggest hit with domestic shipments dropping by almost 40% while other markets will be affected to some extent from supply chain disruptions.

Apple announced that it is unlikely to meet the revenue guidance for the March quarter as worldwide iPhone supply is temporarily constrained and facilities in China are ramping up more slowly than it had anticipated. Analyst Ming-Chi Kuo estimates that iPhone shipments could drop 10% this quarter.

As smartphone makers struggle with component shortages, factory shutdowns, quarantine mandates, logistics and travel restrictions, IDC predicts the situation to stabilise from Q3 2020. Global phone shipments should pick up in 2021 due to accelerated 5G efforts.

Source: IDC via GSMArena 

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