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Notebook, Smartphone, TV Shortages Set To Get Worse By March

Retailers and the B2b channel are facing critical notebook shortages according to intelligence coming out of China with shortages set to worsen by March 2020.

While Notebook ODMs have resumed their production in China there is a critical lack of components which will impact the Australian market with brands such as HP, Dell, ASUS, MSI and Acer facing severe short supply running into the peak June 2020 period.

According to DigiTimes research suppliers are being prevented from going to work due to the coronavirus outbreak.

Apple has became the first major US company to say it won’t meet its revenue projections for the current quarter due to the coronavirus outbreak, which it said had limited iPhone production for worldwide sales and curtailed demand for its products in China.

Apple had projected record revenue for the current quarter of between $US63 billion and $US67 billion, which it said was a wider than normal range due to the virus.

The technology giant did not provide an updated sales estimate, saying that the situation in China is evolving.

Quanta Computer has started volume production at a new assembly plant in Taiwan in an effort to deliver orders however they are restricted from delivering a finished product due to the components shortages.

Digitimes Research estimates that global notebook shipments will fall 29-36% in first-quarter 2020, much steeper than previously thought.

They reported that global notebook shipments for 1Q20 to plunge sequentially due to the epidemic.

China currently manufactures 90% of global notebook production, according to Digitimes Research.

Smartphonemakers will also face lower consumer demand, while delays in product launches will slow 5G chip shipments, a situation which could last until Q4.

The LCD panel segment and AMOLED panel makers, which have plants at the centre of the COVID19 outbreak, see little chance of resuming normal operations in the foreseeable future.

In the handset sector, researchers say Huawei, Oppo, Vivo and Xiaomi have lowered their shipment projections for Q1, estimated to fall by 15.2 percent to 84 million units.

Foxconn has estimated lower shipments of Apple’s basic iPhone, down by as much as 10 percent.

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