The Impact of Coronavirus on Consumer Electronics

Delivery

This report comes in PPT.

Key Findings

Productivity wins the day

Sales of computers and peripherals enjoyed a sudden spike in sales as consumers scrambled to purchase laptops, tablets, printers and monitors as offices and schools closed.

Shifting priorities is bad for sales of consumer electronics

With reduced disposable incomes and depressed consumer sentiment, consumers are choosing to buy necessities like food and cleaning products and avoiding non-essential, big-ticket purchases like LCD TVs.

Some companies will benefit from the crisis

As consumers cut down on discretionary purchases, brands like Xiaomi will benefit as the company’s low-cost strategy will offer good value for money. Apple will not be severely impacted as the company has a loyal following of affluent fans.

Enjoyment is still important

Despite tightening of belts, consumers will still spend money on products they deem to be important (like smartphones) or ones that offer convenience and value for money (like wireless speakers).

Global supply disruption will not trigger a major up-cost for consumers

With most of the major production markets in lockdown, supplies of components and finished goods will be affected. However, with most electronic products being highly commoditised, consumers will not see any major cost hike.