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COVID-19 commonly referred to as Coronavirus has caused a huge impact all over the World. Almost everyone from different walks of life has been affected by the Pandemic around the Globe. Many industries and sectors came on a standstill causing mass unemployment. The World economy is in a state of uncertainty and depression. The Smartphone sector is not an exception either.
According to a statistical report, Smartphone Production may fall 30% during the first half of 2020. The whole World is in Quarantine and practicing self-isolation that limits the movement and sale of every commodity, let aside the luxury items such as Cars and Smartphones. The coronavirus outbreak has greatly affected tech companies and consumers.
2020 was expected to be a Year of Technological advancements such as AI, AR, and 5G. But due to the current Coronavirus Pandemic, it all came to a halt. Companies that invested so much in 5G technology and 5G Smartphones may not find the number of buyers they projected due to the current economic conditions.
5G modems are a bit pricey and that is the sole reason that Flagship 5G smartphones are more expensive than their 4G variants. Now the large Smartphone manufacturers such as Apple, Huawei, Xiaomi, and OPPO, and their major supply chain partners Qualcomm, Broadcom, Qorvo, and Skyworks, among others are hard hit by the declining demand for smartphones.
Another reason for the uncertainty of Smartphone industry and 5G this year is that China is the world epicenter of manufacturing of 5G devices, smartphones, and wearables, and it is one of the most badly hit countries by Coronavirus that badly impact production line and supply-chain because of labor shortages and inactive logistics.
The World was not prepared for something like COVID-19 and the spread of it shows that a Pandemic of this kind has ripple effects on every economic, social and political activity. The clouds of despair hovering over the Smartphone industry will begin to vanish once the Coronavirus spread gets under control and things start to go back to normal.
