In today's world all news and events are connected, that's what globalization has. The turmoil says that when a butterfly flutters its wings in New York a storm strikes on the other side of the globe. By comparison, by 2020 we see a good example of this with a coronavirus virus that has spread from China.
More than 300 people have died and thousands have contracted the virus, but although the epidemic is expected to be properly managed by mid-February or early March, the effects on the country's economy are already felt.
In Chinese pockets the effects are very noticeable and the mobile manufacturers are noticeable. The mobile sales could fall by 30% in the first quarter of 2020, according to a Strategy Analysis report.
Companies are temporarily shutting down
In an effort to control the spread of the virus, Chinese executives have carried out temporary closures at schools and workplaces, which have affected the potential for economic activity to be otherwise.
In the field of mobile telephony this will be taken into account when shipping to suppliers (one of the ways in which sales are calculated). According to the adviser in the first quarter of 2020 we are able to See a decline compared to the same period last year's 30% shipping.
This will affect Chinese brands, but with some manufacturers such as Samsung or Apple that even though they have their headquarters in other countries, they have a factory in the second world empire. Not surprisingly, China makes about 70% of the total calls made annually.
Less mobile sales worldwide
The overall coronavirus effect could mean a 2% decrease in total sales for the year, largely due to the impact of the first quarter. In China the impact will be greater, up to 5%.
The country is one of the world's leading engineers with the basic pillars upon which such names as Huawei are based, which do not travel at its finest moment without any national borders.
In fact, some brands like Huawei or Xiaomi are considering or posting launch events for their new smartphones or announcing online, without any physical presentations.
We need to see how the disease develops and how it will affect one of the world's biggest faults, MWC 2020, which will be on the horizon at the moon in Barcelona.