“The rhythm of new products is indeed disturbed and is in adjustment...The cellular phone profession will go hard this year. Two major problems, supply and demand, exist in Chinese market. We should later do more to make up the recent loss,” said Lu Weibing, vice-president of Xiaomi, regional president for China and general manager of Redmi.
According to the IDC research report, the domestic market is projected to suffer a drop of more than 30% year-on-year over the first quarter. In the whole year, the pace of products gets back on track as the impact gradually subsides. Then the market demand starts to release, and the market will promisingly rebound in the second quarter. The mobile phone market in China will see a year-on-year decline of around 4% throughout 2020.
Influenced by the epidemic, the cell phone industry will face three challenges: the disruption in the pace of new products, the adjustment in the supply chain and the possible impact on the demand side.
However, the crisis accompanies with opportunities. The trend of replacement with 5G mobile phones may come ahead of time, the online operation have been effortless and the cost may go down.