Currently, the tech sector is experiencing the coronavirus impact, with companies closing their offices, stores and factories in China as well as restricting employees from non-essential travel to the country. The suspensions, which were originally expected to last late January through the Lunar New Year holiday week, were quickly extended to 10 February. Authorities in some provinces and municipalities are now saying companies should not reopen until 1 March. Multitudes of short- and long-term effects are expected due to the nationwide office closures, from delayed activities to businesses possibly missing a holiday launch date. Here's a look at how coronavirus has influenced industry already.
Earlier this month, major tech companies announced they would
temporarily shut down all corporate offices, manufacturing factories,
and retail stores across China. These companies include
Apple,
Samsung,
Microsoft,
Tesla, and
Google. (Google has also closed offices in nearby Hong Kong and Taiwan.) Most of the closures were expected to last until Sunday, February 9th, though some companies did not specify when exactly the offices would reopen.
Since many items are assembled in China (or use parts from Chinese vendors), experts also advise consumers to expect shortages for different smartphones, VR headsets, automobiles and other tech accessories. For example, the closures at Foxconn and Pegatron in China are expected to potentially disrupt the development of iPhones and AirPods as factory workers are unable to resume work. If
The Nikkei Asian Review reported
that China is blocking Foxconn from reopening its Shenzhen plant given
the working and living conditions at that factory and that Foxconn had
independently decided to keep its Zhengzhou plant closed pending
government review. The Zhengzhou factory, aka, “iPhone city,” is where
the bulk of the world’s iPhones are assembled.
Bloomberg says
that Zhengzhou might resume limited production the week of February
10th, but with a small number of workers who didn’t travel home for the
New Year. You got to be worry if you need an
iPhone screen replacement or others iPhone parts for repairs, you might potentially need to wait before get your replacement parts.
Due to factory closures, Tesla is also citing the coronavirus for postponed Model 3 deliveries, though the company said it only anticipates a “one to one-and-a-half week” delay. It planned to resume production at its Shanghai factory on Monday, February 10th. Other Chinese brands that expect to see production delays include Oppo, Xiaomi, Lenovo, and Huawei, according to the
South China Morning Post.
“Companies which rely on components from Hubei will be the most
impacted, such as Lenovo,” Nicole Peng, mobile analyst at Canalys, said.
“For companies like Huawei, whose operations are in Guangdong, the
situation is less severe, although no company right now will be able to
resume factory operations at 100 percent capacity.”
