Samsung, Oppo, Vivo, Xiaomi, LG and Realme bites the heat over COVID-19

The COVID-19 is deeply hurting smartphone manufacturers. The latest development is that Samsung, OPPO, Vivo, Xiaomi, LG, and Realme have announced that they are temporarily closing down production units in India because of the rapid increase in the outbreak of the deadly virus.

The Coronavirus (COVID-19) has established presence in over 170 countries after the initial outbreak in Wuhan province in China. With the Central Government strictly imposing lockdowns across the states, the smartphone brands have started to temporarily suspend production in India. It is to be noted that the above companies established their plans under the ambitious ‘Make in India’ initiative announced by the Modi Government in 2014.

According to the respective company sources, the production units will be closed until March 25, 2020. However, the lockdown is in force until March 31. Hence, we expect an extended shutdown of the units. In a positive development, the Central Government has issued an advisory to all companies, not to layoff employees or cut salaries because of the lockdown.

Health Concerns

The companies have decided to close down the units considering the health aspect of the employees and other stakeholders. The COVID-19 is highly dangerous and hence there should be no compromise even though there will be a slight setback to the companies.

After the initial outbreak in Wuhan, factories were closed for an extended time. With the decline in the number of positive cases in China, companies have started to open the units. However, manufacturing plans in South Korea temporarily shut down early March because of the outbreak.

The number of COID-19 cases in India has substantially increased during the past two weeks and hence companies seem to have taken precaution by shutting down the production units.

If you are unaware, Samsung’s Greater Noida factory is one of the largest manufacturing facilities in the world. According to the company sources, the entire manufacturing work has been temporarily stopped until March 25 as per the Indian Government policy.

The company is working hard to ensure a non-stop supply of the products. In addition to smartphones, the facility also manufactures refrigerators, washing machines, and air conditioners.

Vivo and Xiaomi Adopts Work From Home

LG also shut down the production of smartphones and other home appliances in Greater Noida and Pune. Even though Vivo has suspended the production, the company has given instructions to all non-factory workers to work from home. This includes sales, marketing, and social media team.

Xiaomi and Realme also reportedly adopted a work-at-home system. According to reports, Nokia and Ericsson are running their factories after relevant approval from the appropriate bodies. However, the overall production has been reduced to 50 percent.

To recall, the Government of India recently ordered the closure of 80 cities which are affected by the COVID-19 outbreak. The lockdown will be valid until March 31, when the overall situation will be accessed again. Those companies which are having manufacturing facilities in the notified cities have been closed because of safety reasons. We expect the spread of the virus will decline in the upcoming decline because of the lockdown.

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