Impact of COVID-19 in the Global Tech Industry
Published Mar 29, 2020 12:00 am
Many of the spare parts of technology products from smartphones, cars, home appliances, etc. are manufactured and made in China and the outbreak of the new novel coronavirus disease is making a big impact to the world of technology. One great example is the cancellation of Mobile World Congress where major companies decided not to to attend the annual tech gathering which forced the organization to halt this year's world trade fair.
The spread of coronavirus disease also disrupted tech conferences like Apple WWDC, Microsoft Build, E3, NAB, Gartner, Dell World, and more.
The current problem now is the delay of tech supplies and spare parts needed to manufacture and assemble tech products as the COVID-19 affected many manufacturing plants in China which forced them to stop their operations for the meantime or until the disease has been contained.Â
Travel to countries where the disease has been spreading took a big blow in the industry. Some airlines reduced inbound and outbound flights while others are restricted to fly. Shipping boats are also suffering the same fate and without them operating, our next smartphone will have to wait for now.
Roughly 65 percent of electronics makers reported that their suppliers told them that the coronavirus outbreak will result in shipment delays, according to a survey released by electronics trade group IPC. Most expect the delays to last four to six weeks. That was more than two weeks ago.
IPC surveyed its members about coronavirus and compiled the report based on 150 respondents including suppliers, manufacturers and sellers of products ranging from electric lawn mowers or cars to smartphones or cable boxes.
"Many US and European-based manufacturers rely on inputs from China in order to produce finished goods in their domestic factories," the report states. "Delays in these inputs result in delays in production of finished goods."
Shipping lines and cargo vessels are also hit hard by the coronavirus disease and goods are stranded in different ports globally waiting for the go-signal.
About 80% of world goods trade by volume is carried by sea and China is home to seven of the world's 10 busiest container ports, according to the United Nations Conference on Trade and Development. Nearby Singapore and South Korea each have a mega port too.
The global pandemic's worldwide infections have grown to more than 87,000, according to the Johns Hopkins university tracker, while cases inside China, stood at 80,860 as of Monday, according to the Chinese National Health Commission.
As of Sunday, the virus had been detected in 142 countries and regions. This brings about more than a half of the total number of countries around the world to be affected with this disease.
The longer the health crisis situation remains, the harder it is for companies to move goods around the world.