Coronavirus has already affected various industries including the smartphone industry, electric cars industry and a few more. World’s biggest mobile show, Mobile World Congress has also been canceled due to the coronavirus outbreak.
Now, a report from TrendForce, a supply-chain analytics provider has shed some light on the impact of coronavirus on the production rates in manufacturing plants of tech companies.
The production of Apple has been affected adversely due to the coronavirus outbreak. The company has already issued a warning saying that the production of the iPhone 11 is slowed down.
It clearly means that people will have to wait for iPhone 11 as the supply will soon fail to meet the demand. Apple also declined to share revenue guidance for the first quarter of 2020.
Meanwhile, the production of Tesla has been stopped in the Shanghai factory due to the coronavirus outbreak. The company made it clear that this will delay the production of the Tesla Model 3 and people have to wait for the latest electric car.
The report by TrendForce has focused on all the industries individually and has provided insights into the tech industries that will be affected by coronavirus.
The most noteworthy point of the report was the prediction that smartphone production will suffer the most. A 12% decline will be experienced in smartphone production in the first quarter of 2020.
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Other notable impact on tech industry due to Coronavirus
- Optical fiber and 5G Industry: Majorly, the optical fibers are being supplied from Wuhan, the city where coronavirus outbreak originated. 25% of the global optical fiber production is dependent on Wuhan. It clearly states that the 5G development schedule of China will slow down.
- IoT Industry: The IoT industry not suffered much due to the coronavirus outbreak as companies like Huawei have already resumed their work.
- Wearables: The production of smartwatches, fitness trackers and Bluetooth earphones has also been affected due to the shortage of labors and work stoppages. The launches scheduled for the first quarter of 2020 will now take place in the second quarter of 2020.
- Video Game Consoles: The major supply of video game consoles comes from China. The material and labor shortage has weakened the production of video game consoles. The first quarter will not be favorable for the sales of video game consoles. The production and sales of the gaming consoles will boost up in the second half of 2020.
There are industries involving memory products, semi-conductors, and panels that have not been affected by the coronavirus outbreak. To know more about the segments affected by the coronavirus outbreak, you can refer to the official report.
