Coronavirus outbreak leads to a major decline in the production of technological devices

New Ideas in MarketingEssential news for marketers, summarised by YouGov
February 18, 2020, 2:39 PM UTC

A report by TrendForce reveals that smartwatches, laptop PCs and smart speakers would be highly affected by the coronavirus epidemic.

The outbreak of coronavirus has led to major disruptions in the tech manufacturing industry. For instance, smartphone production is projected to decline by 12% Y-o-Y this quarter, while smartwatches are expected to see a decline of 16% from the previous expectations.

However, the sales for wearables are usually higher for the second part of the year, when devices like Apple Watch are updated. The current demand for PS4 and Xbox One has also dropped due to anticipation of the next-generation machines.

The overall report forecasts a major decline in sales for smartwatches, laptop PCs and smart speakers in Q1 2020. With 25% of global fiber optics suppliers based in Wuhan, where the outbreak of this epidemic originated, China’s 5G rollout could also be affected.

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