Smartphone Market In China Expected To Be The First To Start Recovering Following Coronavirus Hit
As coronavirus continues to take the world by storm and change the way we live and work, it’s also decimated the smartphone market, too. But according to a new Reuters report, it’s likely that China will be the first company to see the signs of a comeback.
That’s thanks, in part, to the fact that China now appears to be coming out the other side of its initial coronavirus outbreak, according to the report. In fact, smartphone sales are already on the up in the country.
Smartphone sales in China are rising again as COVID-19 cases there decline and global demand for chips used in work-from-home networks is surging, positioning Asian tech firms for a slow but steady recovery, their early quarterly report cards showed…
“Within Asia, developing signs of industry returning to work tell us that production in China will be the first part of the economy to lift off,” Stephen Innes, global chief market strategist at forex trader Axicorp, said in a note.
Shares in Samsung, also a maker of smartphones and TVs, rose 2% on Tuesday. Foxconn stock rose 1.4%.
LG Electronics shares jumped nearly 7% after the South Korean TV and phonemaker said operating profit likely soared 21% in the March quarter.
China is also the only country with Apple Stores that are open, and while they might only sell Apple phones, that’s still an increased potential for sales compared to countries where iPhone buyers need to go online for their new hotness. Apple Stores are expected to remain closed for the next few weeks at least as the rest of the planet continues to practice social distancing.
China is, of course, where the majority of phones and their parts are produced and the market as a whole is very much tied to the country. We saw that when Foxconn and other manufacturers were forced to close during the last couple of months. With those factories now open it seems China is on its way back. Now we just have to hope the rest of the world follows suit.