A few weeks ago we've learned that Samsung's Xi'an memory plant in China is in full production despite the coronavirus outbreak, but new reports indicate that supply issues may become a problem across all sorts of market segments soon, including consumer electronics and mobile. This could also create a domino effect and raise prices.
According to Reuters citing Vietnam's Ministry of Industry and Trade, Samsung and other companies that manufacture products in the country might run into supply shortages as the coronavirus outbreak has made it more difficult for supplies and materials to be shipped in from China.
The Ministry added that Samsung is considering using sea or air transport to import needed components to Vietnam. But even if the company takes this route, it would ‘hardly meet the production schedule and demand‘ while increasing costs at the same time.
The report further states that if the coronavirus epidemic is not contained in the next 1-1.5 months, Vietnam will run out of inventory and the output of consumer electronics including TVs and phones will sharply decline.
As our readers are likely aware, Vietnam is a key market for Samsung because that's where most of its smartphones, tablets, and wearables are being manufactured. The company operates not one but two factories in the Thai Nguyen province and churns out around 120 million units every year. If its main operations there will be negatively hit, the effects could be felt worldwide and across multiple segments. Hopefully, things will get under control soon.
