The incalculable impact of coronavirus pandemic has created a great upheaval across the world. Not only lives are at risk, but many industries and companies are also on the verge of collapsing. And unfortunately, the hazards continue to grow. Where many businesses are in perils of losing their relevance in the market, experts believe that the tech industry may come out victorious in the post-pandemic future. But gauging the core impact of coronavirus in the present technology sector, we can say that however, recession-proof the industry may be, some visible implications of global economic uncertainty can be seen there as well.
Below are certain major hits that the tech sector (amongst others) have taken due to coronavirus.
1) Major impact to supply chains: Having originated in China, the region was struck as a large number of citizens contracted the disease, and many were forced into quarantine. For example, Apple experienced shortages on its iPhone supply as a result of the company’s primary manufacturer, Foxconn, shutting down much of its production in China.
2) Most important tech conferences canceled, resulted in numerous missed partnership opportunities: Mobile World Congress (MWC), which was set to take place February 24-27 in Barcelona, was canceled due to concerns over the virus. MWC is a cornerstone event in the connectivity industry as it brings together the most important companies in the space to network, share innovations, and forge new business partnerships.
3) The growing need for remote interactions amid the coronavirus pandemic has highlighted a need for 5G technology: 5G’s lightning-fast speeds, near-instantaneous communications, and increased connection density makes it primed for remote interactions, which has become top of mind for many organizations and enterprises as caution mounts over the spread of the virus. Two key areas — telehealth and teleconferencing — are becoming critical for enterprise operations amid the pandemic, and supposedly increased dependence on these areas will help strengthen the appeal of 5G.
4) Worldwide IT spending is expected to drop by 2.7%: According to IDC, worldwide IT spending is now expected to decline 2.7% in constant currency terms this year as COVID-19 impacts the global economy and forces many organizations around the world to respond with contingency planning and spending cuts in the short term. In line with previous economic recessions, IT spending on hardware, software, and IT services is likely to decline by more than real GDP overall, as commercial IT buyers and consumers implement rapid cuts to capital spending in line with declining revenues, profits, market valuations, and employee headcounts.
5) Substantial hit on most user-friendly gadgets like PCs, Tablets & Smartphones: Major spending declines this year are now expected in PCs, tablets, mobile phones, and peripherals with overall devices spending expected to decline by 8.8% in constant currency terms. The PC market was already expected to decline on the back of a strong Windows-driven refresh cycle in 2019, but the crisis will significantly disrupt a smartphone market that was projected to post stronger returns this year.
*References/Stats*- Business Insider & Analytics Insight
Like what you read? Subscribe now for more insight on Tech, Entrepreneurship, Fitness & Lifestyle.
