The Coronavirus is continually causing troubles for China’s electronics manufacturing.
The Coronavirus is showing no signs of stopping. The number of cases and deaths continues to rise everyday.
Apart from the health aspects though, the Coronavirus has begun to infect other parts of people’s lives. In a general sense, the Coronavirus has affected many country’s economies. Due to the quarantine orders, various shops and services are suffering.
One other industry in trouble is China’s electronics manufacturing. China is considered the epicenter for all electronics manufacturing. For one, many products are produced and built in China. If not, they are also known to provide important materials for production.
Factories were supposed to open this past week. However, with the Coronavirus ramping up, the government was forced to keep it closed. It is expected to stay closed until the 10th of February.
Despite having a re-open date in mind, factories may not be able to catch up their production schedules. Certain factors are coming into play that may continue to delay electronics manufacturing. This delay may push back holiday plans as well.
One factor is the on-going quarantines. Certain cities in China are seen as a proverbial ghost town. Majority of people in Wuhan are nowhere to be seen in public. This affects the manpower of stores.
Most people who work in factories live in the country. They then head to urban areas for work. However, the Coronavirus may cause them to reconsider.
There are also many actions in place to stop the spread of the Coronavirus. These include the bans on travelling. While it helps to contain the virus, it may not be the best thing for business.
On-Tap Consulting is a company from Silicon Valley. This company says that people who are building hardware are in “crisis mode”.
Many products have already had their delivery dates delayed. The Nintendo Switch port of video game Outer Worlds has been delayed due to the Coronavirus.
Facebook has also said that the Coronavirus has affected their Oculus Quest product. This is their virtual reality product.
Experts have also said that they are expecting big companies to delay their flagship products. The key example here is Apple’s new iPhone.
For one, companies from the United States have stopped all employees from going to China for all matters. Engineers from companies usually head to China where the product is physically being builty. However, this ban on travel may stop it altogether.
Apple CEO Tim Cook said that their company is limiting their travel to meetings that are absolutely critical and important to the business.
The Coronavirus has caused Apple to reconsider their shipments. Apple has cut their shipment forecasts by 10%. The second quarter has shipment predictions that are also in a state of uncertainty. It is entirely dependent on the Coronavirus and developments about treating it.
One interesting note is the company Foxconn. It is one of the biggest companies in China. It is also Apple’s main assembler. They did not directly confirm that the factories will open on February 10.
Instead they stressed the safety measures being taken by the government.