Smartphone maker Xiaomi in the first quarter, corona virus hit recovery

SHANGHAI (Reuters) – Chinese smartphone maker Xiaomi Corp. (a) expected to be a hit in the first quarter, the sales volume of the distortion caused by the corona virus outbreak, but it is of the opinion that the demand will bounce back in the second quarter and third quarter, the CEO said on Thursday.

FILE PHOTO: Xiaomi founder and CEO Lei jun attends a product launch event of Xiaomi Mi9, Pro 5G, Beijing, China, September 24, 2019. REUTERS/Jason Lee

Lei June, made the comments at a launch event for the new Xiaomi Mi 10 is the flagship line of smartphones, which can be viewed online, due to national restrictions on travel and large gatherings.

“This year’s first-quarter smartphone sales will have to be faced with an impact, but we believe that, in the second quarter and third quarter they will be back,” Slate said to have the corona virus issues.

During an online Q&A session, Lei said, although the ability of the company and the stock is sufficient to supply at least the next two weeks will be affected, as well as many of the factories in China couldn’t resume work until Dec. 10.

“We hope that all our Mi fans will be able to understand it, and that people don’t insult us,” he said.

Lei added that the management of Xiaomi’s supply chain, it is the most difficult task, for which the company will, at the time, and I had to talk to the vendors, each and every day.

At the start of the event will be available to view online, Lei, a native of Hubei province, where the virus broke out, pulled out a face mask, to show support for the effort to protect the health of the global crisis.

“I am from Hubei, and spent four years in Wuhan, in the college, my feelings for the Wuhan’s are pretty deep,” he said.

“I think Wuhan is a beautiful city, and I believe it is, which is the good, and optimistic, the people of Wuhan, you can be sure to fight against this virus.”

In December, Xiaomi has opened a second corporate headquarters in Wuhan, which now has about 2,000 employees.

Manufacturing companies and suppliers in of a large part of China, have suspended production as the country is fighting the virus. Although travel restrictions have been eased in some areas, the migrant workers are reportedly struggling to get back to work, and many of the stores and the shopping malls are empty or closed.

Analysts are expecting that the virus will cause smartphone shipments to and from the mainland of China, to fall about 40% in the first quarter compared with the same period a year ago.

Xiaomi and domestic rivals, including Huawei Technologies, Co., Oppo, and Vivo had been hoping to drive sales by 2020, with the release of more 5 g of the phones that are compatible with the country’s recently upgraded telecommunications infrastructure.

The company said in a stock market filing earlier on Thursday, is expected to 2019, revenue is to have topped 200 billion yuan ($29 billion), an increase of 175 billion yuan in the previous year.

Reporting by Josh Horwitz and the Shanghai newsroom; Editing by Kim Coghill and Mark Potter

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