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30 March 2020

How Coronavirus Affects the Tech Sector?

The tech sector is also negatively impacted by a coronavirus, as the companies are closing doors. The factories in China are also restricting employees from traveling within the country. There are officials from some companies advising their workers not to report until the disaster is over.

The closures were initially expected only to last the new year holiday week that comes late January. It was later extended to March and now until an unknown date.

The multitudes of either short or long term effects have been anticipated worldwide. Many events have been postponed, including sports. Various companies have also missed the holiday launch targets because of nationwide office closures. 

Coronavirus static

The coronavirus is a pandemic and has been documented to have affected more than 100 countries worldwide. The virus (also called COVID-19) continues to outbreak in new countries and territories to wreak havoc on industries and markets around the world. Most businesses continue to confront significant and unique challenges.

To have success in navigating these challenges, they need thoughtful and comprehensive planning. The epicenter of this coronavirus is the center of a worldwide manufacturing hub called Wuhan, China. 

There is also a recent spread to other manufacturing areas and therefore continues to impact the global economy and supply chain. As the pandemic outbreak continues to develop, the tech industries have to consider response actions. The actions they need to take should mitigate the risks and also prepare on how they can deal with coronavirus fallout.

The industries have to come with an effective plan, such as establishing an interdisciplinary crisis team that can identify, assess, and also manage the present risks. This is after the virus has resulted in the closure of offices and stores. The executives and workers have been restricted from traveling in the areas most affected. 

Here is how Covid-19 (coronavirus) has affected the tech blog and industry: 

How Effects On Tech

The multitudes of both short-term and long-term effects have been experienced. The events are being postponed, and tech companies are missing the launches. This is because of the nationwide closure of many companies and retailers. 

Here is how the COVID-19 has impacted the tech industry:  

Closure of Stores

In recent times, major tech companies have also been hit by this pandemic. They have announced they will be temporarily shutting down all the manufacturing factories, corporate offices, and retail stores. This is not only happening in China but also in worldwide stores.
The tech giant companies that are known to close their stores include Samsung, Apple, Tesla, Microsoft, and Google. The offices were not expected to last for a long while closed, but now, it is not known when they will reopen.

Some companies are claiming that the offices have become contact centers and should be opened earlier than retail centers. The decision will be determined by additional cleaning, local restrictions, and health protocols around the public, which will be factors to be considered.

Launch Delays

Many tech products are manufactured in China, and others use parts from the Chinese vendors. So, experts have started warning the customers because they should start expecting shortages. Some of the tech gadgets include VR headsets, smartphones, cars, and other accessories. For example, with the closure of Foxconn and Pegatron, you should expect there will be shortages of iPhones and Airpods gadgets. This is after factory workers can't resume work.

When, for example, Foxconn in China was blocked from its operation in Shenzhen, there will be a negative impact on the tech products. This factory is termed as "iPhone City '' and known for bulk supply of iPhone as it is the place they are assembled.

Event Shake-ups 

Multiple tech companies have partially or fully pulled themselves out from attending the Mobile World Congress, a conference in Barcelona. This happened after a coronavirus adversely affecting Spain. Some of the companies that avoided the event include Amazon, Sony, LG Electronics, Ericsson, Nvidia, and ZTE. Besides, the GSM Association that organized MWC has also canceled that show.

For game developers, they have limited their event travel. Oculus, Facebook Gaming, and PlayStation have also pulled themselves out of their Game Developers Conference. Sony also announced that it would be skipping the Pax East.

The World Health Organization is upgrading coronavirus status, and now it has become a global health emergency and is resulting in the cancellation of essential tech events. This is after it canceled all large gatherings.

Huawei was expected to be hosting its developers' conference in February 2020. The event didn't take place and was postponed. There are also other events postponed, such as sports, until a further date. 

The Long-Term Impact

In the tech industry, the second halves of their fiscal year are vital. This is where the tech giants decide to launch the newly developed gadgets and products. The first period will be focusing on product designs, manufacturing, and also testing.

Worldwide, china usually exports more than half of the global tech supply chain. And the disease has affected China severely, and it is, therefore, expecting to have a massive disruption with the spread of this infectious disease.

In a recent report, it shows that production has declined by 12 percent for smartphone production. The smartwatch has also declined by 16 percent. The major declines have been recorded with PCs, smart speakers, and Laptops.

The impact of this disease seems to affect the long term production of gadgets. This is after it has started now spreading to other countries. Most tech manufacturing companies have stopped their workers, but it's not known until when!

The Final Verdict

Due to coronavirus pandemic, companies have to be mindful of applicable privacy laws when they have to collect information such as travel itineraries and health info. The tech industry has to take more essential steps to mitigate the risk of suffering more negative impacts of this disease. There is enough information on the recommended measures that will help prevent the spread of the disease. The world health organization continues to educate people. It is encouraging for one to observe personal hygiene, avoid physical contact, and with a fitness machine, stay healthy!

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