Indian smartphone manufacturers are of the fear that local production of mobile phones may come to a standstill, starting next week, as the coronavirus outbreak has started affecting the supply of mobile phone components from China.
Many analysts and experts estimate a drop of 10% to 15% in smartphone sales for the present quarter and expect a much bigger dent in the upcoming quarter (April to June), and also expect delays in new launches.
A spokesperson from Xiaomi told ET that the extended shutdown in China is likely to have an impact on the company’s supply chain and component supplies. Further, the company said that it is working on other alternative supply channels for procuring components and raw materials, like batteries, PCBs etc, which were largely being imported from China.
The massive crunch in the supply might cause some negative pressure on the prices of these components, the spokesperson added.
Similarly, Apple, on the other hand, has no new supply of phones due to the shutdown of the mobile component facility in China. According to a few media reports, there is a crunch in iPhone 11 series 64 GB and 128 GB.
The chairman of the Indian Cellular and Electronics Association (ICEA) Pankaj Mohindroo said that the industry has started running out of stocks and if the situation is not handled properly, there will be serious disruptions in the coming days.
Mobile World Congress Event Cancelled
Earlier today, the Mobile World Congress (MWC) 2020, one of the largest global technology events, which was supposed to be held in Spain from February 24 to 27, has been cancelled. The organising body, the Global System for Mobile Communications Association (GSMA) said that the decision was taken in regards to the health and safety of people in the country.
Last year, one lakh individuals attended the event showcasing their innovations and products at the event. The MWC 2020 was scheduled to happen from February 24 to 27.
Cashing in on the fear factor of Coronavirus, hackers are also spreading malware through emails. According to a report by IBM security’s X-force, the email at first glance looks like an informative piece about Coronavirus. These emails consist of information about the coronavirus outbreak and instruction to fight the virus along with malware attached to it. For instance, once the information ends, it urges the user to view the attached document.