After investigating new coronavirus disease cases recorded worldwide, the U.S. markets crashed, hitting Silicon Valley tech firms harshly.
The Dow Jones declined 36%, and each fell to more than 4%, with Apple, Alphabet, Facebook, and Cisco. On Monday, two chipmakers from Santa Clara, Nvidia, and advanced micro products, reached over 7%. The coronavirus epidemic tells the world what happens when the world’s second-largest economy shuts down, said Willy Shih, a management expert at Harvard Business University.
Particularly, the chipmakers are clutch in the whirl. As the chipmakers have the most extensive exposure in the overall business, that’s why they hit the largest. Most technology and electronics products and especially sub-assemblies, all these things are made in China. So, if these manufacturers are not working, then chips will be getting old, and the overall business revenue will be lower.
Peter Leroe-Muñoz, Silicon Valley Leadership Vice-President of Science and Technology Policy, said participants such as Apple were hit twice, once by a global infrastructure disruption, and once again by lost revenue from the Chinese giant market with parts of the country filled among vacancies in roads and shuttles.
In addition to development, tech heavily depends on conferences bringing together various companies every year. However, air travel limitations have reduced business travel, and many businesses – including San Francisco – have taken part in conferences on the issue of the prevalence of the virus. The effect of the virus continues to be felt by telecommunications and consumer technology industries.
Remain the prime in a series of business meetings and keynote events was the Mobile World Congress, a global conference in the telecom industry. Even as the industry faces the risk of delayed projects, even missed alliance opportunities as more employees work remotely.
But the technology and telecommunication industries have also been able to help with the issues that matter most. It helps to keep people secure and safe – by supporting businesses that fail to make video conferencing technology more generally available, supporting governments to provide citizens with exact information and usage for the virus.
Supply-chain analytics provider Trend force releases a study assessing the possible effects for technology manufacturing of the 2019-nCoV outbreak. The coronavirus has already triggered significant disturbances in the engineering industry, with massive trade shows canceled.
Many tech companies, including Apple, Samsung, Microsoft, Tesla, and Google, said they would shut down their offices and stores temporarily in China at the beginning of February. In neighboring towns of Hong Kong and Taiwan, Google already has closed offices.
While the Amazon online trade giant has not yet announced the closure of offices, it has asked the workers to obtain prior approvals and confirmations for all visits to China. Besides, workers from Amazon traveling to and from China are informed to work 14 days from home before their reappointment. Although Facebook, a giant of social media, has no office in China, it has warned all its staff not to make any important trip to China.
The whole study introduces its analyses to an overview of the industry, both into individual components and product categories. It can also display what is on the menu for companies such as Apple. The whole thing is worth reading, but here is a couple of takeovers:
- This portion, which is supposed to be the lowest in five years, is projected to decrease in smartphone production by 12 percent year on year. There are also shortages of upstream parts, such as camera modules, which are heavily affected by the delay of rework reboot.
- Many fiber optics manufactures are situated in Wuhan, where the outbreak of coronavirus occurred, representing 25 percent of global production. Due to the greater need for optical cables in next-generation base stations, China’s 5G rollout may be affected.
- The flash markets DRAM and NAND are unlikely to be impacted due to material inventory and high automation in semiconductor facilities run by companies such as Samsung and SK Hynix.
- Video game assemblers have been hit poorly, but next-generation development will not get damaged until the end of the quarter mitigates the epidemic as the PS5, and the Xbox Series X will be releasing on holidays. The current PS4 and Xbox One demand have already decreased due to the projection of the next computers, which means a shortage of computer machines in the existing gene is also impossible.
- In general, TrendForce predicts the greatest decrease in previous predictions for smartwatches, laptop PCs, and smart speakers. The study states that sales for wearables are typically much higher in the second half of the year as apps like the Apple Watch have been updates, and Smartwatches are supposed to drop by 16% from previous estimates.
The Impact of Coronavirus in Tech Industry
In a speech on 9 February, the GSMA prevented visitors located in the Province of Hubai from taking part in the event, and any fellow visitors to China will have to approve their stay outside of China for 14 days before attending an MWC event.
Factories in China have 20,000 employees on production lines, manufacturing small appliances, linked arms, and stay in a place with up to a dozen people, as long as multiple town blocks.
According to the Stanford Graduate School of Business Prof Hau Lee, a company must be exposed to government investigations to reinstate it. And some employees, especially those living in Wuhan and the rest of the province of Hubei, where the virus was developed, cannot go back to their employment.
In their comprehensive approach, these solutions are all within the realm of intelligent cities, which prove that space is a worthwhile investment in times of crisis. Many smart community strategies support a town’s everyday operations.
However, as illustrated by the coronavirus, this underlying infrastructure — whether urban networking, surveillance systems or citizen contact platforms— can be adapted to fulfill a government’s needs in a time of crisis.