Android phones face difficult launch as MWC 2020 canceled amid Coronavirus fears

With Mobile World Congress (MWC) 2020 officially canceled due to the coronavirus outbreak, mobile vendors, big and small, are now trying to figure out their next steps.

Some, particularly Chinese companies, are mulling plans to proceed with their events in Barcelona, Spain, even though the official conference won't take place anymore, reports CNET.

Every year, the MWC brings together companies from across the world as they use the weeklong trade show to introduce their newest smartphones.

This year was to feature new 5G phones from nearly every major Android vendor, as well as updates about networks running 5G. While the next-gen connectivity technology became a reality last year, 2020 is when it could go mainstream, says the CNET report.

Delayed return to growth

MWC is key to the mobile industry for two big reasons: It's where vendors get attention for their newest devices and it's where companies hammer out deals behind the scenes. That includes getting carriers to agree to offer devices from smaller players. This year's show was officially slated to run from February 24 to 27, with press meetings starting as early as February 21.

On Wednesday, GSM Association (GSMA), the London based industry organisation that represents the global mobile industry, finally pulled the plug on the entire show. The show's organiser said the coronavirus, the virus infecting tens of thousands of people globally and originating from China, had made it "impossible" for the show to proceed.

With MWC no longer taking place, that disrupts the launches—and deal-making—for over 2,000 companies that planned to attend the show. For some, it could mean holding their own events or simply putting out press releases to unveil their newest gadgets. Many could delay their product launches altogether while they figure out what to do.

"The delayed product releases that will occur as the result of this show, as well as the supply side challenges surrounding the coronavirus' broader impact in China ..., could potentially delay the smartphone industry's return to growth into 2021 if the current state of flux is not settled soon," CNET reports quoting Futuresource Consulting analyst Stephen Mears.

There are some companies, particularly the Chinese mobile companies—that are considering proceeding with their already planned Barcelona events, according to people familiar with the companies' discussions.

Hurting the smaller guys

The show's cancellation will have the biggest impact on smaller mobile companies.

It's easy for Samsung—the world's biggest smartphone vendor—to get thousands of journalists to cover its product launches, like Tuesday's Galaxy S20 Unpacked event. It also doesn't have to work hard to convince carriers to sell its newest phones. And in recent years, Samsung has pared back its presence at MWC. It favors holding its own event to introduce its devices.

But for smaller players like Nokia vendor HMD, launching a product at MWC gives them more visibility than they might have otherwise.

With MWC canceled, smaller OEMs and vendors stand to bear the brunt of the burden while up and coming brands like Vivo stand to lose ground as well.