Provide-chain analytics supplier TrendForce has issued a report assessing the possible influence of the 2019-nCoV outbreak on tech manufacturing. The coronavirus has already prompted main disruption all through the tech trade, with enormous commerce reveals cancelled and corporations like Apple anticipating to overlook their forecasts.
The report breaks its assessments down into particular person elements in addition to product classes to offer a broad overview of the trade. It might additionally give some indication of what’s in retailer for particular person firms like Apple. It’s price studying the entire thing, however listed here are a number of takeaways:
- Smartphone manufacturing is projected to say no 12 p.c year-on-year this quarter, which might make it the bottom quarter in 5 years. The availability chain is labor-intensive, so is being closely hit by the postponement of labor resumption, and there can even be shortages of upstream elements like digicam modules.
- A number of fiber optics suppliers are primarily based in Wuhan, the place the coronavirus outbreak originated, and collectively account for 25% of worldwide manufacturing. China’s 5G rollout could possibly be affected because of the better want for optical fiber cables in next-generation base stations.
- The DRAM and NAND flash markets are unlikely to be affected as a consequence of materials stockpiling and a excessive stage of automation at semiconductor fabs operated by firms like Samsung and SK Hynix.
- Online game console manufacturing has been closely hit, however next-generation manufacturing shouldn’t be impacted so long as the outbreak may be mitigated by the tip of this quarter, for the reason that PS5 and Xbox Collection X might be launching within the vacation season. Present demand for the PS4 and Xbox One have already fallen as a consequence of anticipation of the upcoming machines, that means shortages of the current-gen machines are additionally unlikely.
- Total, TrendForce expects smartwatches, laptop computer PCs, and good audio system to see the largest decline in earlier forecasts. Smartwatches are set to drop 16 p.c from prior expectations, although the report notes that gross sales for wearables are often a lot larger within the second half of the yr when units just like the Apple Watch are up to date.
Right here’s TrendForce’s up to date forecasts for shipments in numerous machine classes.