{"id":40379,"date":"2020-02-07T16:16:29","date_gmt":"2020-02-07T16:16:29","guid":{"rendered":"http:\/\/icloud.pe\/blog\/?guid=d55a424e7523bd66499b180df9743a07"},"modified":"2020-02-07T16:16:29","modified_gmt":"2020-02-07T16:16:29","slug":"coronavirus-starts-to-take-its-toll-on-the-tech-industry","status":"publish","type":"post","link":"https:\/\/icloud.pe\/blog\/coronavirus-starts-to-take-its-toll-on-the-tech-industry\/","title":{"rendered":"Coronavirus starts to take its toll on the tech industry"},"content":{"rendered":"


\n Sabina Weston<\/a><\/span>
\n <\/span><\/p>\n

\n
\n
7 Feb, 2020<\/span><\/div>\n<\/p><\/div>\n<\/div>\n

\n<\/a><\/p>\n

\n

The spread of coronavirus is affecting technology companies including Tesla, Qualcomm, and Hon Hai – whicn\u00a0makes iPhones for Apple, as well as products for HP Inc. and Sony.<\/p>\n

Tesla’s stock fell by 17% on Wednesday, following\u00a0VP Tao Lin’s announcement, via Weibo,\u00a0that the coronavirus outbreak in China would delay deliveries of its Model 3 cars.<\/p>\n

The Model 3 vehicles are produced in Tesla’s Shanghai Gigafactory, which last month was ordered by the Chinese government to shut down due to fears of the virus spreading within it. At the time, Tesla finance chief Zach Kirkhorn said that the closure would \u201cslightly\u201d impact the company\u2019s profitability in the first quarter of the year.<\/p>\n

Factories are scheduled to reopen on 9 February, yet with the death toll reaching 563, it is uncertain whether the Chinese government will or will not extend the shutdown.<\/p>\n

The phone industry may also be negatively affected by the virus outbreak in China.<\/p>\n

Qualcomm’s chief financial officer Akash Palkhiwala stated on Wednesday that the government-imposed shutdown caused by the coronavirus might threaten manufacturing and sales.<\/p>\n

During a conference call with investors, Palkhiwala said that Qualcomm expects “significant uncertainty around the impact from the coronavirus on handset demand and supply chain”.<\/p>\n

Hon Hai had more precise estimates about the coronavirus’ impact on its\u00a0business. The outbreak forced the company to revise its\u00a0expected sales growth to 1-3%, rather than a previously projected 3-5%.<\/p>\n

So far, the effects of the virus outbreak on tech companies were\u00a0largely due to China being brought to a standstill by mandatory \u2018self-quarantines\u2019. Companies have not reported any cases of coronavirus among their workers.<\/p>\n

However, LG has decided to prioritise its\u00a0employees\u2019 wellbeing by withdrawing from this month\u2019s upcoming Mobile World Congress<\/a> (MWC), in order to protect its staff from the virus outbreak.<\/p>\n

MWC<\/a> is scheduled to go ahead, yet organisers are likely to introduce a \u2018no handshake\u2019 policy to contain the possibility of the virus spreading among attendees.<\/p>\n

As such, the coronavirus is having a direct impact on the technology industry form the manufacturing side through to technology showcases nations apart from China.\u00a0 <\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"

Sabina Weston<\/p>\n

7 Feb, 2020 <\/p>\n

The spread of coronavirus is affecting technology companies including Tesla, Qualcomm, and Hon Hai – whicn\u00a0makes iPhones for Apple, as well as products for HP Inc. and Sony.
\nTesla’s stock fell b…<\/p>\n","protected":false},"author":627,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-40379","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/40379","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/users\/627"}],"replies":[{"embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/comments?post=40379"}],"version-history":[{"count":1,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/40379\/revisions"}],"predecessor-version":[{"id":40380,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/posts\/40379\/revisions\/40380"}],"wp:attachment":[{"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/media?parent=40379"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/categories?post=40379"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/icloud.pe\/blog\/wp-json\/wp\/v2\/tags?post=40379"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}