The coronavirus continues to paralyze the tech sector as many factories in China and other Asian countries are paused. The first figures and projections anticipate a drop in double-digit deliveries in the first quarter of 2020. And the PC market is no exception.
At Foxconn for example, the production units rotate between 20% and 40% of their capacity. Initial figures and projections are already showing the disaster for the sector. For example, the smartphone sector should see its global production fall by 12% in the first quarter of 2020. This is according to the analyst firm Trendforce. It should translate with the most optimistic scenario in a set back of production from 1.3% compared to last year.
Global PC market to fall by 3.4% in 2020 due to Coronavirus
According to Canalys figures, PC sales should in the best scenario fall by 10% in the first quarter for an annual result down 3.4% compared to 2019. In the least optimistic projections, Canalys anticipates a heavy fall of 21% in the first quarter. It would take time to subside over the year, leading to figures down 8.5% over the whole of 2020.
In China, the coronavirus epidemic is starting to be brought under control. But cases of infected people are increasing abroad, especially in Europe. The epidemic is now present in 40 countries. According to the WHO, more than 81,000 people have an infection with coronavirus worldwide – the epidemic has killed 2,761 people, most of them in China.
In addition to its consequences on industrial production, the coronavirus deeply disrupts the logistics chain between China and other countries of the world. Air traffic to and from China has collapsed. Carriers have temporarily announced that they will no longer accept shipments to China – parcels from the country remain blocked there until further notice.