The Chinese market will ship 5 percent fewer smartphones than expected in 2020, with global smartphone shipments to see a 2 percent drop as the outbreak of novel coronavirus impacts supply and manufacturing, a report forecast.

According to the latest data from market research company Strategy Analytics, China makes 70 percent of all smartphones sold on the planet. Any delay of operations for factories, through quarantine or travel restriction, will inevitably cause a temporary labor supply shortage.

The smartphone market will be adversely impacted by slowing GDP growth and plunging consumer spending, due to the fear and "paralysis" caused by coronavirus, the firm added.

The biggest impact will be in China, but other connected economies will feel a ripple, like Japan or the US, the report said.