Adverse effects on corona virus smart phones as well as appliances
New delhi date. 13 February 2020, Thursday
On the other hand, the country's smart phone makers and appliances makers are in trouble because of the coronary virus that is rampant in China. Sources aware of the situation facing smart phone products in the country are facing severe setback due to this disaster.
Holidays in various places in China have hit production due to the Corona virus. Due to this, various component factories have been forced to close business. Logistics have also been stalled due to slowdown in the ports there.
If the problem is not resolved in the next fortnight, the launch of the smart phone is likely to be postponed. Due to the factory shutdown, Chinese manufacturers have indicated that the price of the components will increase by 3-5% and if the situation does not improve then there is a possibility of further increase in prices.
The rise in the price of components will increase the prices of products associated with China in the Indian market. Components of all the brands operating in India are mainly from China. China accounts for 5 percent of the total value of television components and about 5 percent of smart phone components.
In addition, components of mobile phone display, open cell television panels, printed circuit boards, capacitors, memory, LED chips are imported from China. In addition to other parts for appliances, sourcing of AC compressor and washing machine motors is done from China.
Hong Kong has also stopped cross-border travel right now. Due to which the supply of components will be delayed by at least 2-3 days.
Due to this adverse situation created, production at home will also be a major hit. New product launches will also be delayed. If the problem continues, production and sales are likely to drop drastically. And the price is also likely to rise.
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