The initial coronavirus outbreak in China affected global supply chains, but as the epidemic has developed into a global pandemic, with more than 700,000 confirmed cases across 200+ countries, the effects have become much wider and less predictable. Mobile World Congress, a landmark telecommunications conference, was among the first to be cancelled in a series of industry conferences and keynotes.
Decline in Smartphone Production
This quarter is expected to decline in smartphone production by 12 per cent year-on-year, making it the lowest quarter in five years. The supply chain is labor-intensive, so the postponement of work resumption is hitting heavily and upstream products such as camera modules would also be shortaged. Owing to the increased need for optical fiber cables at next-generation base stations, China’s 5G rollout may be affected. Apple faced shortage in its supply of iPhones as a result of Foxconn, the company’s primary distributor, closing down most of its manufacturing in China. This would potentially lead to a drastically reduced outlook for iPhone shipments via Q1 for Apple by as much as 10 percent, according to estimates. Yet the telecommunications and technology industries have also found ways to help with what matters most keeping people protected and safe by supporting businesses who are struggling to make video conferencing technology more widely accessible.
Conclusion
The coronavirus has greatly affected the tech industry, affecting the global supply chain and causing endless product delays. The coronavirus real impact will be felt in the weeks to come as the components run into shortages. Although companies like Samsung no longer depend on China to produce, the individual components that go into your phone are still predominantly manufactured in the country.
