Chinese Phonemakers' Responses to Coronavirus, Factory Closures
Liu Jia | Li Na
DATE:  Feb 06 2020
/ SOURCE:  yicai
Chinese Phonemakers' Responses to Coronavirus, Factory Closures Chinese Phonemakers' Responses to Coronavirus, Factory Closures

(Yicai Global) Feb. 5 -- Chinese smartphone makers and components suppliers are responding in various ways to the novel coronavirus epidemic spreading like wildfire across the country, with many having to shut down factories as they are based in the disease's epicenter Wuhan.

Oppo, one of China's top manufacturers and a rising force on the global playing field, is turning to its smart factories in Algeria, Bangladesh, India and Indonesia while its Chinese plants remain closed, a spokesman for the firm said. Though Oppo has several suppliers in Hubei province, the firm has enough raw materials in inventory to maintain production, he added.

"Lenovo's global presence gives us confidence that we can better tackle these challenges," a worker at the tech manufacturer's biggest production base, in Wuhan, told Yicai Global. The factory, which rolled off its 100 millionth smartphone in July, is remaining closed during the extended Chinese New Year holiday and short-term production will definitely be affected, the source said.

Major Apple supplier Hon Hai Precision Industry, or Foxconn, also has a major plant in Wuhan that it has closed until at least Feb. 10. An employee at the firm told Yicai Global that the company has set up an epidemic prevention command center led by its chairman to coordinate work as the deadly virus continues to spread across the country.

Huawei, China's largest phone maker, said it has resumed production of its consumer products and telecoms equipment, most of which takes place in Dongguan in Guangdong province, the region second-most affected by the virus behind Hubei, the province in which Wuhan is located.

China's top phonemakers could face a decline in demand in the domestic market in the first half of this year and may struggle to fulfill their overseas expansion plans because of the virus, according to Sui Qian, director of Strategy Analytics' Wireless Smartphone Strategy Service. International brands like Apple may also suffer from insufficient production and falling demand in China.

Editor: Tang Shihua

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Keywords:   novel coronavirus,phonemakers