The major outbreak of the Corona Virus in China is having a major impact on tech firms. The manufacturing of almost every tech gadget you use happens in China, and with a Virus outbreak, tech firms had to stop all the manufacturing, or the outbreak has slowed down the production line in one or the other way.
About the Outbreak
Infection spread of Corona Virus has exceeded 42,000 with more than 1,000 deaths. The most infectious area is the place called Wuhan, and the virus has spread around Hubei Province in China. But more than 25 countries have reported cases of Corona Virus.
MWC Barcelona is an annual trade show organized by GSMA, dedicated primarily to the mobile communications industry. The event is currently held in Barcelona, Spain at the Fira de Barcelona Gran Via, usually in February or early-March. This year Mobile World Congress was about to held on 24-27 February, but it is now canceled due to the Corona Virus Outbreak.
CEO John Hoffman of GSMA, the firm that hosts MWC every year, said the coronavirus outbreak has made it “impossible” to hold the event.
With due regard to the safe and healthy environment in Barcelona and the host country today, the GSMA has canceled MWC Barcelona 2020 because the global concern regarding the coronavirus outbreak, travel concern and other circumstances, make it impossible for the GSMA to hold the event. The Host City Parties respect and understand this decision. The GSMA and the Host City Parties will continue to be working in unison and supporting each other for MWC Barcelona 2021 and future editions. Our sympathies at this time are with those affected in China, and all around the world.John Hoffman (CEO of GSMA)
Apple Quarterly Revenue
Apple’s revenue will be hit as coronavirus creates iPhone supply shortages, most of Apple’s manufacturing operations are held in China. A temporary store closure took place, and Apple has announced that it will “gradually reopening” stores, but with reduced hours, and the foot traffic is almost none.
The health and well-being of every person who helps make these products possible is our paramount priority, and we are working in close consultation with our suppliers and public health experts as this ramp continues.Apple
Apple recorded more than $13 billion of sales in China during the last three months of 2019. This will drastically get lower. The manufacturing has slowed down the production of iPhone’s and Apple has warned that there will be a shortage throughout the quarter.
Major tech companies announced that they will be temporarily shut down all corporate offices, manufacturing factories, and retail stores across China. The list of companies includes Apple, Samsung, Microsoft, and Google. Moreover, Google has closed offices near Hong Kong and Taiwan.
Most stores should have been opened last week, though some companies decided not to disclose when exactly offices and stores will be reopened. The estimated time when stores will be up and running is the first week of March.
Product Shortage & Launch Delays
Many of the products that you use are manufactured in China, there is a good chance, that the device you are reading right now was built in China. There will be a shortage of various smartphones, VR headsets,, and other tech accessories. iPhones and AirPods will be the hardest to get during this period. Other brands from China are also expected to have delays in production, brands include Oppo, Xiaomi, Lenovo, and Huawei.
Companies that rely on components from Hubei are most likely to have an impact. Similarly, products that were expected to get shipped this month are now getting delayed. One of these products that was much waited is the Nintendo Switch console. games, and accessories.
We will keep updating this thread, so stay tuned for more information on what’s happening to the world of technology due to the Corona Virus Outbreak.
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