Coronavirus less likely to hurt Samsung than Apple


Samsung is less exposed to the negative effects of the coronavirus outbreak in China than many of its rivals, including Apple.

But the opposite of true of Huawei. This China-based phone maker is likely getting hurt more than Apple.

Coronavirus hit some phone makers more than others

Yesterday, Apple was forced to announce that the CORVID-19 outbreak in China could make it fall short of revenue goals for the current quarter. Samsung hasn’t made any such announcement, and it isn’t likely to, points out Reuters.

Apple’s difficulties stem partially from its reliance on Chinese factories to produce iPhones, Macs and other products. These are either operating at reduced capacity as workers stay home to avoid catching the deadly disease.

But half of Samsung’s smartphones are produced in Vietnam, far from the epicenter of the CORVID-19 outbreak.

Huawei is based in China and is likely in a worse situation than Apple, who is shifting some production to other countries.

These are the three top phone makers globally. Last quarter, Samsung was on top followed by Apple then Huawei.

Samsung sales in China can’t get much worse

China is also a major market for Apple products. But the company warned yesterday “All of our stores in China and many of our partner stores have been closed. Additionally, stores that are open have been operating at reduced hours and with very low customer traffic.” This is cutting into sales.

Samsung has less to worry about because it isn’t a major player in China. It isn’t even in the top six phone makers in that market, according to Counterpoint Research.

Apple, on the other hand, had 6% of that market in the third quarter of last year, the most recent for which figures are available.

And Huawei dominates Chinese phone sales, capturing a 40% share in Q32019. And the coronavirus is expected to lower demand. “Huawei group is likely to suffer as China has accounted for over 60% of its total smartphones sales,” said Flora Tang, Research Analyst at Counterpoint.

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