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How much will Coronavirus Impact the Tech Industry? – Report



Photo: Getty Images

We already know how much havoc the Coronavirus outbreak has created across the globe. Plenty of life lives have been lost and thousands have been affected. This indeed has impacted the business and according to the latest report from TreadForce which provides supply-chain analysis, Coronavirus has already caused a big disruption throughout the tech industry.

The report has been issued assessing the likely impact of the coronavirus and big trade shows like MWC have been canceled. The TreadForce report breaks its assessments down into individual components as well as product categories to provide an overview of the tech industry. The entire report can be seen in the source link provided at the end of this article. Some of the key points are mentioned below.

  • The smartphone production is expected to decline 12 percent year-on-year this quarter that would make it the lowest quarter in five years.
  • The 5G rollout in China could be affected due to the greater need for optical fiber cables in next-generation base stations as many optical fiber optics suppliers are based in Wuhan, China which accounts for 25 percent of global production.
  • The manufacturing of the video game consoles have been affected heavily but the next-generation production should improve as long as the outbreak can be mitigated by the end of the quarter since PS5 and Xbox Series X will be launching in the summer.
  • The stockpiling and high level of automation at semiconductor fabs operated by companies like Samsung and SK Hynix has not affected the DRAM and NAND flash markets.
  • There isn’t much predicted about the wearable industry since most of the sales happen in the second of the year and it is expected that the outbreak will not persist in the second quarter of 2020.
  • The smartphone industry is one of the most affected sectors because its supply chain is highly labor-intensive. The first quarter of 2020 has been 12 percent decline by YoY for the production.

The below table illustrates the detailed forecast of TrenForce for shipment in various categories for the tech industry.

Source, Via

Image Source: Getty Images


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