Alexander Alfie
08/10/2020 - 19:48
- Clarín.com
- Economy
In the first half of the year , 1,817,765 cell phones were manufactured, 48% less than in the same period of the previous year, when 3,498,644 mobile terminals were produced, according to data from the Association of Electronics Factories (AFARTE).
All cell phones that are manufactured in Argentina are produced in Tierra del Fuego due to the tax exemptions that that province has. The chamber that brings together the manufacturers of Tierra del Fuego (AFARTE) highlighted that sales fell 22% in the first semester, with 2.7 million mobile devices.
"The difference between production and sale is explained by a reduction in stocks . There was no greater entry of imported items, which continue to be around 5% of the market, so the distribution chain got used to working with minimal stocks," he told Clarín Federico Hellemeyer, president of AFARTE.
In June, production was 505,000 cell phones, a 15% drop compared to the same month the previous year, since all factories had resumed their operation, with strict sanitary protocols. But after two months, almost all of them closed again, at the end of July, due to an outbreak of coronavirus cases in the city of Río Grande.
This Monday they had to reopen the factories, but the Fuegian government decided that they remain closed at least until next Sunday, August 16 , which complicates the supply of cell phones for most brands throughout the country.
"The shortage of stocks is going to accentuate," Hellemayer said. The only factory that is working now is Newsan, which produces for LG and Motorola, because it is the only one in Ushuaia, where the closure of productive activities that the Fuegian government resolved does not govern.
AFARTE's expectation was to be able to overcome part of the fall caused during the first half of the year, even if it was to produce 6 million cell phones this year, 20% less than in 2019. In fact, the month of July had been in in line with June, with a drop of around 15% . But the temporary closure of factories in August again complicates cell phone production plans, which "will probably cause them to fall further as there are no signs of recovery," Hellemeyer said.
With these numbers, sales are also at historical lows, below last year, when 7.1 million units were sold; and also less than in 2004, when cellular telephony was just becoming widespread. Everything indicates that 2020 could be the worst year in cell phone sales in the last 17 years.
GB