iPhone Shipment Estimate Reduced 10% Because of Coronavirus Outbreak

TF International Securities annotator, Ming-Chi Kuo, has lowered his iPhone shipment forecast for the starting time quarter of this year because of the Coronavirus outbreak in Prc. In a research notation published this week, Kuo revised his global iPhone shipment estimate to between 36 and 40 meg units – a 10 per centum reduction from his original estimate.

According to Kuo: "The smartphone shipments in the Chinese market was 360-380 million units in 2019. Nosotros look that shipments will refuse by 15% YoY to 310-330 million units in 2020 (vs. 330-350 million units of marketplace consensus) because of lower-than-expected replacement need from 5G models and negative impacts on consumer confidence from the Coronavirus outbreak". He, however, refused to predict the numbers for the 2nd quarter "because of the uncertainties of the Coronavirus epidemic and (possible lack of) consumer confidence".

It's worth noting that Apple tree this week airtight all its its corporate offices, stores and repair centers in China equally part of its efforts to comprise the deadly outbreak. While that volition, no doubtfulness, contribute to the overall decline in shipments, Kuo claims that Android manufacturers are too feeling the heat. To add to the possible decline in consumer confidence stemming from the Coronavirus scare, the lack of unique employ cases for 5G is also stopping Android users from upgrading to new handsets, he claimed.

"We recall that the primary reason for the lower-than- expected replacement demand is due to no innovative user experience being created by 5G. Even the penetration charge per unit of 5G smartphones grows due to replacing 4G models, while the overall market nevertheless shrinks, and it hurts the growth of brands and the supply chain", he said.

Overall, smartphone shipments in China is believed to take declined precipitously during the Chinese New year's day holiday period, with Kuo claiming that the numbers take fallen by 50-sixty percent year-on-year, largely because of the coronavirus crisis.