In 2019, 7 million cell phones were manufactured in the different plants located on the island. It was the lowest figure since the mode production cycle began, back in 2009, after the so -called technological call, the name of Law 26,539 with which the increase in taxes to imported technological products such as computers, cell phones and others of mass consumption electronics was approved.

For this 2020 crossed by the coronavirus pandemic and the restrictions that were established on March 20, the most optimistic forecasts indicate that they will barely be made to integrate 6 million smartphones.

Between January and April, 1,150,847 cell phones were manufactured in the south, according to Afarte data, the camera that brings together the terminals located in Tierra del Fuego. To reach this figure, two phenomena converged that, more than simultaneously, were successive and impacted on the lowest production.

"Until March 16 the plants were operating with 57% idle capacity. This was based on how the demand was reacting. From that date the plants closed," said Federico Hellemeyer, president of Afarte.

The plants were producing at that time with the inputs they had because no new shipments from parts were received. Chinese plants stopped in February and only opened in mid -March when they closed here. That aspect complicated the supply because, with quarantine, the people who had to do remote work invested in computer equipment, including cell phones. Retail operators and chains sold the stocks they had without reacing at the level they needed according to the demand.

The land of Tierra del Fuego reopened in mid -May but not even with the production levels of March, but much lower by the sanitary protocols that were established both nationally and provincially.

"Tierra del Fuego established a maximum working day of six hours, in addition to enabling a production line per turn, when the plants usually have between six and eight production lines. So it started with a low capacity that was expanding as the restrictions were flexible," Hellemeyer added.

The fall of the cell phone is worldwide but Argentina was affected by two successive restrictions, one global and another local
That is, the photo of the first semester is described as follows: in January, February and until the middle of March the production remained "at normal levels of a loose year. From the second half of March until mid -May there was no activity. And in June, the manufacture is laboratory," he said.

Now work is already being done with three production lithas per factory but the tasks continue to be very limited. Limitation that deepened on Wednesday when the UOM of Tierra del Fuego began a strike for 48 hours after rejecting the salary proposal of Afarte.

So, if a linear projection is made on what occurred in the first four months of the year, the 5 million cell phones would be reached by the end of 2020. Of course this will not be so. It is estimated that there is a better production from the second semester. Although other aspects must also be taken into account.

Leaders' problems

The two main mobile phone brands in Argentina, Samsung and Motorola, have been facing various obstacles to production. Problems that are also repeated in the other brands but are not decisive in the final production of the island.

“When the quarantine began, our sector was affected because for two months we could not produce in Tierra del Fuego. Sales in the first two weeks collapsed but the consumer adapted, the sale of cell phones online was enabled and today we are already selling units at the same rate that before the quarantine begins. It has been sold online, but also began to open places especially in the interior, since the telecommunication is essential,” he said To iprofesional, Martín Novoa, commercial manager of Motorola Argentina.

For the Executive, these days it is being sold at the same rate as before quarantine. "The inconvenience is that the sector has a very low stock. With which the first problem is not being able to deal with demand," he added.

Market behavior is rare, they described from Afarte. But there are other data that cannot be ignored. "The global telephone demand fell 70%. It is not clear if people buy more or less because the demand fell but the supply fell," said Martín Cricco, commercial director of Alcatel.

In line with the camera data, the Alcatel executive said that at this point of the year "it would be normal for 4 million cell phones to be produced. If compared to 2019 at this point, 3 million phones had already been integrated."

The company, which produced 350,000 units in 2029 had planned to double that amount in this 2020. But, until now, 150,000 telephones came out of the terminals. "We estimate that we are going to end above 500,000 units at the end of the year because our goal is to reach 7% market share. Today we are registered by 10% of Market Share but we believe that it is a transitory level due to the situation of the plants," Cricco added.

Tierra del Fuego plants operate with limitations and today affects a UOM Novoa strike, meanwhile, said that one of the company's challenges is “satisfying the demand of the consumers who need the equipment because it is an essential good to communicate, and on the other hand they replenish the channels that today are without stock, because during this period they sold everything they had”.
Prior to COVID-19, Motorola planned to grow between 10% to 15% compared to last year, "but given the situation we are analyzing that year against year we will have a fall of more than 20%, depending on the levels of production in Tierra del Fuego," he said.

How do you end?

For Hellemeyer it is very difficult to estimate how the year will close in terms of production. Especially, because the economic scenarios that manage for the third and four quarter of the year are not flattering.

"There is as a false sensation of cell phone demand because the channel sold everything it had but without reacing. The distribution was suspended and there was also some shortage without forgetting that the demand was also limited," he said in relation to the fact that he could only be bought through the Internet and when the physical stores were opened on commercial avenues they had to close again.

Today the production levels of the bulk of the plants are between 50% and 60%. But what is integrated is not enough to supply market demand, hence missing stocks are detected in some online or retail stores.

It happens that mobile phone manufacturers usually work with 12 to 15 weeks of stock advance, period that allows you to keep the market healthy. Today that stock is barely moved in advance of two to three weeks. Hence the difficulties in rapid supply without forgetting existing restrictions at the transport level.

So how many mobile phones will produce Tierra del Fuego in this 2020? As stated, optimists say about 6 million units. There are those who doubt that 5 million cell phones are reached.

But do not forget an additional detail. The restrictions on purchases of dollars from the Central Bank of the Argentine Republic (BCRA) are hindering the payments of component shipments. Some suppliers are supplying, others are not and it is not clear how much patience will continue to have Argentina. Although part of the same problem, the dollar turn is for another story.

Fuente: www.iprofesional.com/ https://www.lalicuadoratdf.com.ar/