Covid – 19, also known as the CoronaVirus, a serious epidemic, is hitting not just individuals but businesses globally. With this epidemic turning into a serious threat to the global economy, the IT industry is sure to take a hit. In this one, I tried to focus on the impact this virus has on the technology industry.
Covid – 19, a human tragedy that is affecting thousands of people globally. This epidemic was observed first in the city of Wuhan, China and from there, it was just a matter of time before the world caught on to it. As of now, to date, the casualties have been way more than 3000 with over 80,000+ cases. Some of the major cases have been observed in the USA, Italy, Germany, France, South Korea, Japan and even in India the cases of Covid – 19 are on a rise.
To know more about Covid – 19 click here.
Do you know? That there is a ban in Itlay with more than 60million people on a lock-down. The economy will just crumble as the lockdown is not just limited to Italy but other countries as well.
“All the measure of the red zones are now extended to all of the national territory,” Giuseppe Conte, PM Italy, said at a press conference on Monday evening as he also announced a ban on all public events.
Even as I write this, the epidemic is hitting one individual at a time with no cure but only precautions that we are sure to take.
Can you imagine? What this must be doing to business? The Chinese streets are quiet. No travel due to the virus is hurting business more than ever. Companies are shutting operations all over the world.
“Apart from the tragic human consequences of the COVID-19 coronavirus epidemic, the economic uncertainty it has sparked will likely cost the global economy $1 trillion in 2020, the UN’s trade and development agency, UNCTAD, said on Monday.”
WOW! A $1 Trillion dollars?
China is the biggest importer of products from most countries across the world. The virus has had an impact on supply chain operations in the country. With the first quarter taking a hit, the Organisation for Economic Co-operation and Development (OECD) predicted that COVID-19 will lower global GDP growth by one-half a percentage point for 2020 (from 2.9 to 2.4 percent); Bloomberg Economics warns that full-year GDP growth could fall to zero in a worst-case pandemic scenario. (source:https://bit.ly/3378RGq)
What it has in store for Technology!
Now, after a little briefing, let us come to what covid – 19 is doing and can do to technology.
Apple said it will miss its quarterly revenue due to the virus. It has also shut all of its stores in China. Tim cook has given permission to the employees to work from home with limited to no travel to Italy, China, and South Korea.
Similar steps have been taken up by Facebook & Google and they all have pulled out of the SXSW festival.
The transportation of raw materials for creating a mobile phone, machine, a robot is just not happening and there is no certainty till what time this might happen. Technology, being a constant evolution with people working day and night to bring something that will change the world, is on a halt because of Covid – 19. There is a supply chain interruption not just in China but across nations. The most important resource required to build any technologically advanced product, human beings, are scared to even step out of their comfort. And, if the worst-case scenario takes place, the global economy hit will be $2 trillion.
A large number of companies in the US import parts and pieces from China. With over 30% of SME’s back to operation in China, it is becoming increasingly difficult for companies in the US to avoid production disruptions. Tech Giant such as Apple is in search of a local supplier for tools but even then the components are priced 30% higher than usual as the demand is increasing with a limited supply. (source:https://bit.ly/3cQCb8t)
Although it is not clear what exactly will the impact be on the tech industry, I am sure with a $1 trillion hit, all the industries will suffer and pay their debts. Here is a recent case that came up in Google India in Bangalore. And this is what Google had to say:
“We can confirm that an employee from our Bangalore office has been diagnosed with COVID-19. They were in one of our Bangalore offices for a few hours before developing any symptoms. The employee has been on quarantine since then and we have asked colleagues who were in close contact with the employee to quarantine themselves and monitor their health”, said Google India in a statement on Friday.
Companies are asking their employees to work from home and take mandatory leaves and if they don’t, legal action will be taken against them. So, now you know that even the tech giants of the world are taking strict measures to help curb down the spread of this virus which ultimately will lead to a financial loss and the economy will crumble.
Keep an eye out for more information! I will be posting about it with updates as I read more and understand more.
Till then, take care and be safe!