Apple, Huawei, and Xiaomi suffered a massive drop in sales during February, with the Cupertino company selling less than 500,000 smartphones. The company’s shipments slumped from 1.27 million in February 2019, which is a 60% decline YoY. The monthly comparison is even worse, with 2 million iPhones pushed right before the Lunar New Year that takes place in the last days of January.
While Apple shipped only 494,000 units, Chinese companies dropped from 12.72 million in February 2019 to 5.85 million twelve months later. The drop, reported by the China Academy of Information and Communications Technology, is due to the closing of multiple factories across China, combined with the state curbing travel and asking residents to stay at home.
Research companies like IDC and Canalys are expecting a 40% drop in shipments in Q1 2020 as the virus outbreak is hurting both demand and the supply chain. The first two weeks of February were critical for the Chinese market where Apple closed its stores that now are open even if not at full capacity. The company was even forced to revisit its revenue guidance due to the slumping sales.