Samsung and LG Suspend Operations in China Due to Coronavirus
According to foreign news reports, due to the new coronavirus epidemic, Samsung Electronics and LG Electronics decided to suspend some of their operations in China until February 9.
According to Samsung Electronics the Samsung flagship experience store located in The Bund in Shanghai will be closed from February 2 to February 9. Located on Nanjing East Road, Samsung’s flagship experience store is Samsung’s largest store in China. As for other Samsung stores, decisions will be made separately depending on the development of the epidemic. As for LG Electronics, the manufacturing of batteries and displays in Nanjing will be suspended until February 9th.
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Ever since the outbreak, many foreign companies have suspended their operations and production in China. Sources quoted by Reuters said that Taiwan’s Foxconn will continue to suspend its factories in mainland China. This will result in logistical difficulties that will impact its customers, including Apple.
Days ago, in order to avoid the possibility of infection, Apple closed all its retail stores in China. This is likely to prompt a general decline in the overall iPhone sales in China. Ming-Chi Kuo, a well-known analyst covering Apple for TF Securities, believes that iPhone shipments will decline by 10% in the first quarter of 2020.