Coronavirus vs. the Tech Industry: What Has the Pandemic Done?
The novel coronavirus, officially known as COVID-19, has taken the world by storm, causing lockdowns all around the globe. With over two million active cases and 270,000 total deaths across the globe as of May 7, 2020, this pandemic has had several catastrophic impacts on the world, leaving hundreds of thousands of people dead and the global economy in shambles. Over 26 million people have lost their jobs, and many factories are being shut down in the hope that this virulent disease will be contained safely.
Originally from Wuhan, China, the coronavirus has hopped from country to country via airplanes, coughing, and even simple handshakes. Although the virus has started to settle in China, its effects have lingered. From canceled events to a major halt in production, here is how this virus has left its mark on the technology industry.
Canceled Events
Due to the fear of the further spread of the coronavirus, many events have been either canceled, postponed, or have been relocated to a virtual setting. One of the more notable cancellations was the Mobile World Congress (MWC) in Barcelona, the world’s largest smartphone trade show. The event was predicted to generate 492 million euros for the city of Barcelona and was supposed to create over 14,000 jobs. Technology corporations like Sony, Amazon, LG, and ZTE were planning on showcasing their latest smartphones, prototypes, and unique technology that people would not be able to see anywhere else. Unfortunately, each one of these companies decided to pull out of the conference as the threat of coronavirus rapidly grew in Europe, especially in Italy. Other events like Google I/O were completely canceled similarly. Events that were moved online include Apple’s popular WWDC, Dell World, the Game Developer Conference, and Microsoft Ignite. Companies are highly interested in preserving the safety of their employees, and so for the collective safety of the tech industry and its members, most events have been canceled or have been moved to the internet.
Product Launch Delays
The global pandemic that is coronavirus has not only forced people to postpone or completely cancel certain technology events but has also delayed the product launches of many products. Some of these products include the Xiaomi Mi 10, which was supposed to debut at MWC, the Vivo V19, and the Realme Narzo lineup. Alongside product launch delays, COVID-19 has prevented the delivery or shipping of certain products so that the disease is not unintentionally delivered to a customer. Companies like Nintendo and Asus expect to have delayed manufacturing of their products, and Tesla is even postponing Model 3 deliveries.
Economic Downfall in China
As I stated earlier, the number of coronavirus cases in China is decreasing. On February 16, 19,457 new cases were uncovered, whereas from May 1 to May 7, there has been a total number of 12 new cases of coronavirus in China. The economic effects, however, have done a tremendous amount of damage to the tech industry.
China is the top computer exporter in the entire world, exporting an astounding 55 percent of all computers. They are also the world’s top exporter of cellphones, exporting 46.9 percent of all cellphones in 2019, worth over 120 billion dollars. China is the largest exporter of goods among all countries, generating almost 2.5 trillion dollars in 2018. When factories and stores were forced to close when the coronavirus started to rapidly spread across the country, the global economy was affected immensely. Companies that produced their goods in China, which most of them do, were forced to delay production, resulting in less revenue and products sold.
Store Closings
To protect both employees and consumers, several of the world’s largest and most valuable tech companies have decided to close all of their stores and offices. Apple, the world’s most valuable and one of, if not the most popular tech company, has closed all of their stores around the globe, but are rumored to be opening during May. Other companies that have closed their buildings include Samsung, Microsoft, and Amazon. Most companies have started to utilize online chatting software like Zoom and Skype to allow coworkers to interact at a safe distance.
The coronavirus has truly left a deep gash in the tech industry and the global economy as a whole, but if the world continues to practice self-isolation until scientists can develop a cure for this virus, we should be fine. Numbers will rise and panic will spread, but do not fear. All it will take for everything to return to normal is time and for us technology enthusiasts, a less exciting year for tech.
