Coronavirus is affected by technology, production and costs

coronavirus

The problem that is currently arising from the "Coronavirus" in China, nor has only raised concerns about the loss of life and that the effort that is being carried out worldwide to timely detect carriers who were in Wuhan or had contact with an infected person gets out of control.

If not, it is also beginning to generate problems in the industrial sector And as many of you will know, China is one of the countries that exports many products to different countries, and it is also a country where different large companies have their production factories, such is the case of Apple.

And is that the fear of contagion among the staff of the factories has generated problems with shipments Because there are still concerns about a possible contagion that may be generated by receiving products from the Asian country (although it has not been proven that this can happen).

For from small distributors who are engaged in selling products on popular websites, such as Alibaba, AliExpress, Chinavasion, DealExtreme, etc. Even large multinational companies have been affected, because due to the problem, many cancellations have been generated by customers and even the distributors themselves.

All this It has been generated by the lack of personnel and the delay in the reopening of the factories currently closed, which has started to show a reduction in the production of electronic parts.

The reports online and industry analyst information indicate that various factories located in the epicenter of the coronavirus epidemic, are experiencing delays in the production, which should have an effect on the supply and price of many components.

One of these products is LCD screens, since at least five factories in Wuhan have closed to prevent the spread of the coronavirus and as a result it is beginning to generate an increase in the prices of the screens, due to the reduction in manufacturing and product availability.

All of this should have a direct effect on the price of LCD panels and possibly side effects on laptop manufacturing as well.

Note that so far Intel and AMD have made no mention of the effects of coronaviruses on its forecasts, while Microsoft for its part did so with a higher than usual forecast for the second half.

On the other hand Apple is another affected company due to the coronavirus epidemic, because last Saturday it announced that it would close all its official stores, corporate offices and contact centers in China until February 9.

Since the coronavirus outbreak was declared a public health emergency world by the WHO and launched the first mandatory quarantine and forced foreigners not to return from China.

The company began closing three stores in China early last week due to concerns about the spread of the virus.

Apple said in a statement:

"As a precautionary measure and based on the latest advice from leading health experts, we will close all of our offices, stores and contact centers in mainland China until February 9." The company also said it hopes to reopen stores "as soon as possible."

Besides Apple, Other foreign retailers have joined, including Starbucks Corp and McDonald's Corp, to temporarily close their stores as a precautionary measure.

Many other companies have asked their employees in China to work from home and stop non-essential business travel during the first week of February.

Finally an increase in various products is expected, in addition to a decrease in imports and above all that if this problem with the epidemic continues for a longer time, this will have a great impact not only on the scarce but also many companies could begin to think about a decentralization of the production of their products in China.


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