Amid the global crisis of the Covid-19 outbreak, smartphone companies are feeling the pinch. The problems started with the cancellation of the world’s largest mobile consumer show prompting the companies to seek alternative platforms to release their new products.
As the virus continues its romp across the world, Apple managed to ship just 500,000 in China last month. According to government data released this week, the iPhone makers’ sales are down 60 percent compared to a similar period last year.
Apple’s latest iPhone sales figures in China depreciate the company’s efforts to close the gap with local rivals who saw a massive sales increase in 2019. However, Apple was not the only company with bleeding sales; other companies have taken a hit, too.
General smartphone sales in China have fallen by 55% in February, compared to a similar period last year.
Analysts predict that the companies will be able to race for recovery later this year, however. Apple, specifically, has a massive opportunity ahead of them as they are expected to release a 5G iPhones.
IDC analyst Will Wong says he expects the company and the Chinese market in general to experience recovery in the second half of the year.
Apple was ranked as the fifth smartphone seller in China last year, according to IDC. Despite having strong growth potential in H2 2020, analysts argue that the company will face fierce competition from local rivals as they also try to recover.
Apple’s main iPhone assembler Foxconn anticipates resuming normal business operations towards the end of the month. Out of the 42 Apple stores located in mainland China, all but four have already reopened. The company previously warned its investors last month missing out on revenue targets in the current quarter of the fiscal year.