Android is right now seeing how its neighbor, iOS, is getting his beard trimmed. And it is that the analyst of TF International Securities, Ming-Chi Kuo, has reduced his iPhone shipment forecast for the first quarter of this year, due to the outbreak of coronavirus in China.
In a note published this week, Kuo revised his global iPhone shipment estimate to between 36 million and 40 million units, a 10 percent reduction from his original estimate.
Coronavirus, affecting the sale of iOS (iPhone) and Android phones
According to this analyst:
Mobile phone shipments in the Chinese market were 360-380 million units in 2019. We expect shipments to decline by 15% year-on-year to 310-330 million units in 2020 (vs. consensus 330-350 million units). of the market) due to the decrease in expected replacement demand for 5G models and the negative impacts on consumer confidence from the coronavirus outbreak ”.
He, however, refused to predict the numbers for the second quarter.
“Due to the uncertainties of the coronavirus epidemic and (possible lack of) consumer confidence.
It's worth noting that Apple closed all of its corporate offices, stores and repair centers in China this week as part of its efforts to contain the deadly outbreak.
While that will undoubtedly contribute to the overall decline in shipments, Kuo says Android makers are also feeling the pinch.
5G not yet + Coronavirus = drop in mobile phone sales
To add to the possible decline in consumer confidence stemming from the Coronavirus, the lack of unique use cases for 5G is also preventing Android users from upgrading to new phones, he claimed.
“We believe that the main reason for the lower than expected replacement demand is because 5G has not created an innovative user experience. Even the penetration rate of 5G smartphones grows due to the substitution of 4G models, while the market in general is still contracting and hurting the growth of brands and the supply chain ", he said.
In general, it is believed that shipments of Android phones and iOS in China have declined precipitously over the Chinese New Year holiday period. And Kuo says the numbers are down 50 to 60 percent year on year, largely due to the coronavirus crisis.
And you, do you think the coronavirus will affect the technology industry and Android or iOS more? The MWC 2020 is approaching and the coronavirus does not stop, so it may be a decaffeinated Mobile World Congress, with many brands almost out of the game. Either due to restrictions on flights and airlines or due to the restriction of movements in China, the main producer of mobile technology in the world.
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