Not a single day passes without hearing about the implications of the Corona virus, on various sectors of the global economy, and from the sectors that are reported in successively, the smart phone sector .. What is the relationship between the two?
The Chinese market is considered one of the most important globally for phone sales. Last year, sales of smart phones in China reached about 369 million phones, or a quarter of smart phone sales in the world.
But the hit of the new Corona virus, which has circulated in China in recent months and infected tens of thousands, is strong on these sales.
Experts have estimated sales in China to drop by about 30 percent, while some estimate the declines to be around 50 percent.
The biggest affected will be Chinese companies, especially Huawei, which alone account for about 39 percent of smartphone sales in China, and with the rest of the Chinese companies, they account for about 85 percent of smartphone sales in China.
Like Huawei, the American Apple will be affected as well, because it sells more than 27 million phones in China annually, while a company like Samsung does not rely much on the Chinese market, and its share there does not exceed 2 percent of sales.
Sales are one aspect, which is the importance of China being a market for phones, but more importantly, it is the stronghold of the smartphone industry.
According to estimates by some research institutions, China alone is a center for the manufacture of 70 percent of smartphones sold in the world, and when Chinese factories stop working, this means that the smart phone supply chains are affected in most parts of the world.
So the expectations for smart phone sales worldwide have been reduced, there are estimates that sales will decline by 12% this quarter, to reach 275 million phones.
According to estimates of "Trend Force", Huawei will be the biggest hit, with sales down by about 15 percent.
Behind Huawei comes Apple, which is expected to drop sales in this quarter by about 10 percent, while the least affected are Samsung, which depends on manufacturing in Vietnam and not in China.
There are 8 percent of Apple's stores in China, and the company's sales in China account for 17 percent of its total sales, which is home to about half of Apple's suppliers.
This means that if Apple's sales in China stop for one week, this means the company will lose about $ 850 million.
After these numbers, it is natural to see Apple reduce its sales forecast, and it is not farfetched to see other companies do that, because when we talk about China, we talk about the center of the smartphone industry in the world.