Coronavirus To Cause $42 Billion Revenue Gap In Global Consumer Device Shipments Over The Next 9 Months

Must Read

List of Guaranty Trust Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is...

List of Access Bank Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number which usually identifies both the bank and the branch where an account is...

Here is the list of Providus Bank Branches in Lagos

A little over two years after it was granted a commercial banking license with regional authorization by the Central...

New analysis from Juniper Research found that Coronavirus could cause around a $42 billion revenue gap over the next 9 months for smart device vendors. The analysis examined a number of key device verticals including smartphones, tablets, consumer robotics, smart speakers and smart wearables. Three impact scenarios, low, medium and high, illustrate a range of possible outcomes.

Production Shortfall of 80 Million Devices

In our high impact scenario, the research forecast a reduction in output of over 80 million devices over the next 9 months. Delays to the delivery of components, such as batteries, processors, and displays, will each have the potential to disrupt production rates from device vendors. These, including AppleSamsungAmazonXiaomi and Huawei, must all ensure that any gaps in their supply chains are closed in order to meet the demand for their devices.

The advisory note forecasts that smartphones will comprise the majority of this device shortfall over the next 9 months, accounting for over 85% of missed shipments. It anticipated that the virus may also cause longer-term issues, including the development of new devices. Additionally, it noted that the financial uncertainty from the impact of the virus means that demand will be lower, leaving device vendors unable to completely recover lost device sales.

Read Also:  COVID-19 Enlightenment Series: What Is COVID-19 Generally About?
- Advertisement -

Vendors Must Adapt ‘Resilient’ Strategies

The research urged device vendors to diversify their component supplier bases, arguing that doing so will enable them to ensure that future gaps in the supply chain are filled.

Just-in-time manufacturing has been a weak link in the resilience of device vendor supply chains. This kind of manufacturing involves organising supply chains to timed deliveries of components immediately prior to the device manufacturing stage. Whilst holding stock can be expensive, Juniper Research believes that vendors must now consider building inventories of ‘strategic’ components.

Juniper Research provides research and analytical services to the global hi-tech communications sector; providing consultancy, analyst reports and industry commentary.

- Advertisement -
Coronavirus To Cause  Billion Revenue Gap In Global Consumer Device Shipments Over The Next 9 MonthsCoronavirus To Cause  Billion Revenue Gap In Global Consumer Device Shipments Over The Next 9 Months

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Coronavirus To Cause  Billion Revenue Gap In Global Consumer Device Shipments Over The Next 9 MonthsCoronavirus To Cause  Billion Revenue Gap In Global Consumer Device Shipments Over The Next 9 Months

Latest News

Four strategies for helping women in fragile settings succeed in the digital economy

The coronavirus (COVID-19) pandemic is disproportionately impacting women’s livelihoods. Young women are more prone to unemployment and under-employment than men, and many...

How To Apply For NPower 2020 Recruitment

The NPower program was launched a few years ago and became one of the top opportunities for young individuals to begin their careers in...

Insider Dealing: MTN Nigeria Discloses Purchase of 920,000 Shares by Toriola

MTN Nigeria Plc on Thursday disclosed an insider dealing of 920,000 shares in line with the new Nigerian Stock Exchange (NSE) policy. In a statement...

SSA Monetary Policy Response to COVID-19: At the expense of price stability?

The global outbreak of the novel Coronavirus in early 2020 precipitated an economic crisis in the sub-Saharan African region as the prices of key...

Opay shuts down other business arms to focus on fintech, e-commerce

OPay launched by Opera software has announced a shutdown of some of its business units to focus only on financial technology services. Services on OPay...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Coronavirus To Cause  Billion Revenue Gap In Global Consumer Device Shipments Over The Next 9 MonthsCoronavirus To Cause  Billion Revenue Gap In Global Consumer Device Shipments Over The Next 9 Months