New analysis from Juniper Research finds that the coronavirus outbreak could cause around an US$42 billion revenue gap over the next nine 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.
In Juniper’s high impact scenario, the research forecast a reduction in output of over 80 million devices over the next ninne 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 Apple, Samsung, Amazon, Xiaomi and Huawei, must all ensure that any gaps in their supply chains are closed in order to meet the demand for their devices.
Juniper’s advisory note forecasts that smartphones will comprise the majority of this device shortfall over the next nine months, accounting for over 85% of missed shipments. The research group anticipates that the virus may also cause longer term issues, including the development of new devices.
Additionally, Juniper notes 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. The research group urges 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.
The accompanying graphic is courtesy of PGNguru.