Chinese smartphone maker Xiaomi Corp is seeing signs of a sales recovery in China, it said on Tuesday, as the country claims it is returning to normal after being the epicenter of the COVID-19 coronavirus outbreak which has quickly grown into a global pandemic that has severed the flow of goods and people, stalled economies, and is in the process of delivering a global recession. Economic contagion is now spreading at least as fast as the disease itself.
“The (Chinese) market has entered a full recovery stage, and… has already recovered to 80 to 90% of the normal level,” [Xiaomi] Chief Financial Officer Shou Zi Chew said on an earnings call. He said sales in China fell in the first quarter due to the economic impact of the virus, but did not say by how much.
Chew said he expected demand for smartphones to be resilient globally even though the virus was spreading to other countries. The company will take a hit in global sales during March and April, he said, but expects to see signs of recovery in May. “If we take reference from China’s experience, I think smartphone demand is resilient,” said Chew. “I think it will rebound quickly.”
The coronavirus, which first appeared in Wuhan, China, has killed more than 37,000 globally and forced countries to lock down borders and curb movement. Businesses have been hurt by supply disruptions and factory shutdowns.
Apple warned last month it was unlikely to meet its March quarter sales guidance as the ramp-up of Chinese factories that produce iPhones was slower than expected after weeks of closures.
MacDailyNews Take: We’ll believe China smartphone sales are in recovery when we hear it from a reputable company located in a reputable country.