The global mobile device market had “mass disruption” to its production and supply chains due to labor shortages and inactive logistics resulting from the COVID-19 pandemic that hit China last month, reported ABI Research. The U.S. imported 214.6 million smartphones last year, 74.6% from China, said Census Bureau data we accessed through the International Trade Commission. China was 75.8% of the 14.4 million smartphones imported to the U.S. in January. Import data from February and March are expected to show a COVID-19 impact on reduced Chinese cargo. Supply chain partners such as Qualcomm, Broadcom, Qorvo and Skyworks faced shrinking smartphone demand; first half production could drop by as much as 30%, ABI forecast Wednesday. The 5G rollout will feel adverse effects from the disruptions, which will suppress near-term growth of the next-generation handsets, said the report. A move to lower price tiers was expected to be a key driver for boosting 5G smartphone shipments this year, but now it’s expected that shipment volume for 5G smartphones will be “much lower than previously expected, slowed by a stagnant supply chain and crippled demand,” it said. The market is expected to face disruptions and delays. Global business smartphone units will ship 12% fewer smartphones to enterprises in 2020, Strategy Analytics predicted.

Governments want "clear and enforceable safeguards" for the .org community in any contractually binding public interest commitments Ethos Capital makes in the Public Interest Registry deal, ICANN's Governmental Advisory Committee said Tuesday. Officials at last week's remotely held ICANN meeting (see 2003090027) encouraged directors to keep engaging with the community and to ensure the views of stakeholders are "properly taken into account." GAC members welcomed ICANN reassurances that "all options remain open." They praised progress made in developing a policy for generic top-level domain registration data that complies with the EU general data protection regulation but urged ICANN to come up with a standard form for access to nonpublic information by parties with a legitimate interest, saying that "remains a high priority for the GAC."

ICANN scheduled its June 13-16 ICANN74 Policy Forum in The Hague, the organization announced Friday.

Coronavirus disruptions are expected to cause a $20 billion revenue hit for the global smart home category, reported Omdia Friday. The market is pegged at $101.1 billion for 2020 compared with a previous projection of $120.6 billion, said the research firm. Smart home device shipments are estimated at 603.5 million units vs. 693.5 million previously forecast. The smart home market “tends to be more resilient” during economic challenges vs. less diversified categories, said analyst Blake Kozak, but it, too, will undergo a correction this year. Asia will have the biggest slowdown, equating to $7.8 billion and 66.2 million fewer shipments than originally forecast, it said. Production should ramp up as the Asia region recovers from the pandemic, but depleted inventories could add strain to potentially lower demand. In the U.S., Omdia cut the smart home revenue outlook 10.6%, though device growth is forecast to remain stronger than in other countries. But it cautioned U.S. growth projections could be reduced further if stock markets don’t rebound or if the virus spreads, affecting U.S. supply chains. In areas of the U.S. with high rates of contagion, the number of professional smart home installations could be reduced, it said, and the capability to either ship and deliver products or to install devices could be "drastically diminished."

Mastercard announced a global partnership with Samsung to give digital access to consumers and small businesses in emerging markets through its Pay on Demand platform. Mastercard's Pay on Demand uses Samsung’s embedded Knox security platform. Tools let consumers analyze their credit history and get virtual card numbers that can be used to pay for their device and make transactions where Mastercard is accepted, it said Thursday.

The coronavirus is taking a toll on IT markets, with buyers and vendors adjusting “to a new set of assumptions and a new global economic reality,” reported International Data Corp. Wednesday. The researcher expects a “significant slowdown in spending on hardware in particular” during the first half, with software and services spending also hit from effects reverberating through supply chains, trade and business planning. A “pessimistic scenario” plots 1% IT spending growth for the year vs. an original forecast of more than 4%: “These forecasts are more likely to trend down than up in the next few weeks,” it said. IDC estimates February IT spending grew 4.3% in constant currency terms, down from a 5% projection, reflecting lowered device sales. Strong PC sales in Q4 gave way to a smartphone upgrade cycle driven by 5G, it said. Analyst Stephen Minton called the situation “extremely fluid.”

USTelecom is seeking a single change to rules approved 5-0 in November barring equipment from Chinese vendors Huawei and ZTE in networks funded by the USF (see 1911220033), it told aides to all the commissioners, except Jessica Rosenworcel. USTelecom’s petition is “very narrow” and seeks “reconsideration of a single footnote that expands the Commission’s information collection on use of covered equipment to all affiliates and subsidiaries of [eligible telecom carriers], regardless of whether the affiliate/subsidiary receives USF support,” said filings posted Monday (see here and here) in docket 18-89. Aides included Nick Degani, senior counsel to Chairman Ajit Pai.

The Commerce Department launched a portal for department guidance documents, it said Wednesday. The portal provides all guidance issued by the agency. That includes the Bureau of Industry and Security, which is responsible for export restrictions on Huawei.

Marvell Technology entered its fiscal 2021 in early February “trying to assess the near-term impact from the coronavirus,” said CEO Matthew Murphy on a Q4 call Wednesday. Before the outbreak gained intensity in January, “our bookings and backlog were getting stronger,” he said. But as the spread broadened, “we started to see supply chain-related impacts to our business,” he said. It’s impossible to “fully quantify” what drag COVID-19 will have because the situation “remains fluid,” he said. “However, our revenue guidance for the first quarter includes a 5% reduction based on what we know so far.” Marvell’s fiscal Q1 ends in early May. The “ultimate impact” of the coronavirus “is still unknown, and assessing the full magnitude at this point is not feasible,” said Chief Financial Officer Jean Hu. Two types of supply-chain “disruptions” are at play, said Murphy. Marvell’s suppliers are having trouble sourcing components from heavily impacted regions inside China, plus its customers’ factories are not at “full capacity,” he said. “We have really no way to know” if COVID-19 will cause any long-term “demand destruction,” he said. Murphy reads the same reports as everyone else that “factories are gradually coming back online,” and people in China “are actually going back to work,” he said. “But we don't really know what the ripple effect is to the global economy, candidly, from this disruption.” Shares closed 10.4% higher Thursday at $24.93.

The coronavirus outbreak's “too many unknowns” prevent Hewlett Packard Enterprise from publishing financial guidance for its fiscal Q2 ending April 30, said CEO Antonio Neri on a Q1 call Tuesday. “Macro uncertainty,” including from coronavirus-induced components shortages, sent revenue down 7% in Q1 ended Jan. 31, he said. The virus “is causing disruption to both supply and demand,” said Chief Financial Officer Tarek Robbiati. “While we cannot quantify the real impact at this time, we're monitoring the situation closely and are working with our suppliers to minimize potential impacts.” HP Enterprise decided to cancel or postpone most of its sales conferences and other “sponsored events” through April “out of abundance of caution” for employees, customers and partners, said Robbiati. “This is also causing supply and demand disruptions and affecting our revenue profile.” Shares closed 2.6% lower Wednesday at $12.26.