Smartphone Supply Chain Unprepared to Respond Quickly to COVID-19, Says ABI

Smartphone production could fall 30% during 2020's first half from coronavirus disruptions, said ABI Research Tuesday. “Ripples from China will be felt globally,” said David McQueen, calling mass disruption to production lines and stalling of supply chains due to labor shortages and inactive logistics “disastrous.” With China the world’s manufacturing center for most smartphones -- and a top market -- the sector has been hardest hit by delayed shipments and a “weakened development of next-generation products,” he said. A move to lower price tiers was expected to boost 5G smartphone adoption this year, but the pandemic will push out development and shipments of affordable models, McQueen said. Though the outbreak is expected to come under control by the end of Q2, it will take time for consumer confidence to return, said the analyst.