Much has been said about the Covid-19 (Coronavirus) epidemic that is happening around the world, however the impact that this virus is causing affects not only the health sector, but also large technology companies worldwide.
This is because China is one of the countries that most imports technology in the world. The companies Pegatron and Foxconn, which are considered the largest global automakers, are located in the country, so all the components used for the assembly of electronics are located in the same location. With the high rate of infection in the region, the production line was directly affected. Many workers are on leave and there is not enough strength to keep production in high demand.
Post coronavirus billing
A report released by TrendForce (the market analysis agency) revealed that the global technology sector had a considerable drop of 5% to 16% in the expected revenue for the first quarter of 2020.
Main sectors and brands damaged
Sectors: smartphones, smartwatches, notebooks and smart speakers.
The production line of the video games “Xbox One and PlayStation 4” are practically stopped, however, it is not entirely due to the virus. Demand for the console has declined sharply and consumers are waiting for the new generation of games. If the proliferation of the disease is not contained, the technology market is at serious risk of running out of some launches in stores. Since production is not fully automated and requires thousands of people to work in the area.
The importance of automation
A sector that was hardly affected was the manufacture of electronic components (such as plate processors. This happened precisely because human labor is not necessary. A large part of the production is already automated and operated practically by robots.
As a result, the technology industry in general was harmed. However, nothing so serious that it cannot be reversed during the year. If the epidemic worsens, the technology market will have to prepare itself to face one of the biggest crises caused by a disease.
