Just before coronavirus outbreak in China, the negative trends in smartphone industry were looking to shift upwards. Qualcomm’s official have stated in numerous occasions that the coronavirus is going to have a huge impact on the phone industry, mostly related to manufacturing and sales.

Coming from the leading supplier of modem chips that are essential for the most basic function of smartphones, we might be looking into some issues, depending on how sever the pandemic becomes. There is definitely a huge degree of uncertainty as something like this hasn’t happen in this day and age, where global markets represent a huge part of every country’s economy.

Impact on 5G market should not be as significant, since this market will be focused at United States, Korea and Japan, which should give enough of a leeway to weather this disruption. However, global pandemics as learned by history commonly have a shocking and sudden impact where nobody can predict how it is going to play out.

Qualcomm, being mostly a provider of technology licenses to smartphone makers and others might feel the sting of this virus, as it highly depends on the Chinese import as well.

Source: Thomson Reuters Foundation News

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