【Market Commentary】Recently, there have been signs of a reemergence of the pandemic in China. For instance, as of last month, a total of 12 provinces were affected, including major iPhone production sites Henan and Suzhou.
Smartphone assembly plants, be they primary or secondary, generally have sufficient safety standards (thanks to experience from last year), meaning the pandemic’s impact on smartphone manufacturing should be controllable unless a large-scale outbreak occurs.
Hence, TrendForce does not expect, at least for now, the latest wave of COVID-19 in China to hamper smartphone production, which is expected to fall between 85-90 million units for 2H21, while annual production for 2021 is expected to reach 225-230 million units.
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