After closing its Apple Stores, the Apple brand is expected to be hit by the coronavirus epidemic. Analyst Ming-Chi Kuo estimates that deliveries should slow by 10%.
In the fourth financial quarter of 2019, Apple sold more smartphones than Samsung and Huawei, a small feat when you compare the number of ranges marketed by the brand and the price of its devices. If the company is trying to invest in emerging markets such as India, where phones have been subject to a tariff revision to make them more attractive, its juiciest market in Asia remains China. However, the coronavirus epidemic is a game-changer. Apple has already closed all of its Apple Stores and its offices in the country, which slows activity, but we did not yet have a quantitative estimate on the impact that this decision could have on mobile sales. According to the still very well informed analyst Ming-Chi Kuo, deliveries are reported to have lost 10% in speed.
Revisions to sales forecasts
The People’s Republic of China has quarantined the city of Wuhan and its 36 million inhabitants, has already built (in less than 10 days) a hospital that can accommodate 1,000 beds, exceptional measures to contain what could turn into a pandemic. Apple closed its offices and Apple Store until February 9, a temporary measure because the company hopes to resume business as soon as possible. According to Kuo, the 10% slowdown in deliveries forces a revision of previous sales estimates: ultimately, it would be between 36 and 40 million units that should be sold in the first quarter of 2020.
Samsung under cover
Huawei will also be affected by the consequences of the epidemic, but their competitor Samsung, on the other hand, whose production chains have not been in China since October 2019, should not experience a slowdown. Samsung withdrew from the country following very small market shares of around 1 percent. If the coronavirus threat persists, the production of the future iPhone SE 2 could also be affected, as MacRumors notes.
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