Global smartphone sales plunge 14% in February

SHANGHAI: Global smartphone sales tumbled 14% in February as the coronavirus spread in China and overseas, Counterpoint Research said yesterday, a likely harbinger of more declines as outbreaks worsen in many parts of the world.

The outbreak prompted Apple Inc and other smartphone makers to shut their China stores in February and government data suggests Apple sold less than 500,000 smartphones in the mainland Chinese market during the month.

China, which saw sales drop 38% in February from a year earlier, is now showing signs of recovery with many stores re-opening in mid-March.

“There are also signs of recovery in South Korea, but for other parts of the world, the worst is yet to come,” said Jean Park, a senior analyst at Counterpoint.

Smartphone makers are facing new supply chain disruptions as more countries impose lockdown orders.

On Tuesday, Foxconn Technology Group, one of Apple Inc’s key suppliers, said that it would suspend operations in India in compliance with government lockdown order.

Foxconn, also known as Hon Hai Precision Industry Co Ltd, is suspending operations until April 14, the company said in a text message to Bloomberg News.

It intends to resume India production based on further government announcements.

Apple has only a sliver of India’s booming smartphone market because high prices and hefty import tariffs of as much as 20% put its products beyond the reach of average Indians.

But the company views the country as important for longer-term growth.