Coronavirus pain for Chinese mobile handset makers may be Samsung's gain

With manufacturing suspended in China and supply of key components and handset models in jeopardy, Chinese firms are feeling the heat.

As China reels from the coronavirus epidemic, Korean mobile phone maker Samsung seems to be recovering some of the lost ground.

While the outbreak has forced most leading brands like Apple, Xiaomi, Oppo, Vivo, and Realme to rework their launch dates and pricing strategies, Samsung, which struggled to maintain its hold over the market last year, has taken the lead.

The data from the Bureau of Indian Standards (BIS) shows that the local unit of the Korean major has lined up nine new handset models for launch in early 2020. Among major brands, only Redmi (from Xiaomi) and LG have registered two models each since January 1 with the national standards body, followed by Motorola and Coolpad (one each).

Delhi-based local brand Cellecor, which has a presence in the entry-level segment, tops the chart with 15 models registered since January 1. Hitech, another Indian brand, holds the third spot with eight models registered over this period.

According to Faisal Kawoosa, lead analyst at TechArc, the trend clearly indicates that “major OEMs (original equipment manufacturers) are delaying their launches. Typically, after the BIS registration, models are launched in 4-6 weeks”.

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He said, “As of now it gives advantage to Samsung among major OEMs as it can procure from Korea and other countries, resulting in low impact on its supply chain.”

With manufacturing suspended in China and supply of key components and handset models in jeopardy, Chinese firms are feeling the heat. Though many of them have set up facilities in India, they continue to depend heavily on supplies from China.