Huawei could be worse hit by the coronavirus than Apple, according to analysts - Business Insider

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Huawei is downplaying coronavirus impact on its smartphone sales, but experts say it will suffer more than Apple

Samsung, the world's biggest phone maker, is currently less affected since about half its production has moved to Vietnam.

In a statement sent to Business Insider this week, Huawei's president of carrier business Ryan Ding played down the coronavirus' effect on the company's fortunes. He added: "But still, some of the factories in Wuhan have not resumed their work yet. So according to the current situation we can say that our assessment is that in the short term future there will not be much impact on our supply chain capability and manufacturing."

Forrester analyst Thomas Husson said Huawei's business could easily take a bigger hit than Apple as the company has a bigger market share in China, where quarantines and restrictions have affected consumer behavior. "It has a significantly larger retail presence in China than Apple does, and China accounts for more than 50% of its sales. In fact, we expect all Chinese vendors to be heavily impacted as they rely on domestic sales in China for most of their shipments. Even if the virus is contained in a few weeks, it will take some time for operations to go back to normal — two to three months.

 

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