The Coronavirus for tech industry means business, and it’s up to the digital world on how to respond through never-thought-before digital solutions and advanced technology.
The COVID-19 has shaken the world to its core, while all industrial sectors have been impacted greatly by drastic market fluctuations, consumer spending, and various kinds of corporate proceedings.
Both the public and private sectors are struggling to contain the spread, while the economic consequences have just begun to surface. However, it’s certain that we’re bound to see some major changes in the global industry.
Let’s go through what Business Insider and eMarketer analysts have to say about the Coronavirus impact on industries like tech and telecommunications.
Coronavirus for tech industry
How the supply chain sector has taken the maximum impact?
Easily, the tech industry and supply chains took the foremost and arguably the most significant hit from COVID-19. The supply chain suffered a powerful disruption as China was forced to quarantine thousands of citizens in no time.
This resulted in partial or complete shutdown of factories and plants, some of which contributed greatly to most tech equipment consumers worldwide use today. For instance, Apple reported a huge shortage of iPhones supply as Foxconn, the company’s major manufacturer, shut down its operation in China.
According to MacRumors, the Apple analyst Ming-Chi Kuo predicts that this will lead to around 10% less supply of phones through Q1. Obviously, a tech giant like Apple will surely have a contingency plan in place encouraging the production to speed up in non-affected regions in order to compensate for initial loss, the global widespread of Coronavirus makes it difficult to locate regions that are least, or not affected at all.
Even if it happens, the resources of Chinese economy won’t be easily recovered as the government has invested billions in advanced manufacturing sectors and “Made in China” efforts including telecom equipment and semiconductors.
How big tech conferences are getting cancelled, or put on hold at least
Many top tech conferences have been cancelled, a mighty loss in lucrative partnership opportunities.
Mobile World Congress (MWC) scheduled to take place from 24th-27th February in Barcelona, was cancelled due to the outbreak. Apparently, MWC holds great importance as a major touchpoint in the connectivity business, and bridges the gap between all big names worldwide, shares creativities, and acts as a platform for forming future alliances.
This led to many companies indefinitely rescheduling their events they planned to showcase at MWC, unfortunately, the relentless growth of Coronavirus even led to cancellation of the events.
Moving beyond MWC, Facebook cancelled its Global Marketing Summit and F8 developer conference; IBM had to livestream its developer’s conference, seemingly which physically hosted around 30,000 participants last year; and Google too had to move its Google Cloud Next event online.
According to PredictHQ, the cancellation of such tech events around the globe costed about $1 billion in economic losses.
How big is the shift to online platforms?
Although the shift to online channels contained the losses of cancelled tech conferences, the global industry will still likely go through a stagnant innovation phase due to missed in-person business opportunities.
Understandably, attending an important conference or event isn’t the same as attending it over a video conference. The case with tech conference attendees is no different.
It is not hard understand that realizing the potential and opportunities over a live streamed Global Marketing Summit cannot replace those of when attending the event in person. While it is quite difficult to quantify the results over an online event, the effects due to missed in-person events will be felt throughout 2020.
The increasing demand for remote conversations has brought the 5G technology in the highlight, evidently accelerating its use in the long term.
The 5G technology is known for its lightening connectivity speed, almost instantaneous communications, and enhanced connection density making it the perfect platform for flawless remote interactions—something that every top organization worldwide is striving for to achieve amid this drastic outbreak.
Telehealth and video and teleconferencing are two major areas worth focusing on for every enterprise now, while ever increasing dependency on remote treatments and interactivity will only add fuel to 5G’s growth.
The technical knowhow and practicality of revised digital SOPs have enabled physicians and doctors to diagnose and treat patients without asking them to come to hospitals, clinics, etc.
We already have witnessed the use of 5G in the battle against COVID-19. For instance, in January, China Telecom and telecoms ZTE created a 5G-driven system that facilitates online consultations and virus diagnoses by doctors located at West China Hospital to 27 other hospitals treating infected patients.
Given the power of 5G in this regard and desperate times to reach concerned physicians and hospitals, we’re expecting more use and subsequent advancement in the 5G technology allowing further, more productive use in the future.
Video and teleconferencing
As stated above, the use of Zoom, Microsoft Teams, Google Hangout, Cisco Webex, are other top video and teleconferencing tools over the course of coronavirus pandemic has increased greatly for enterprises not happy with halting their routine proceedings.
Hence, we can safely conclude that such elevated reliance on enterprise video and teleconferencing applications will tempt people to give 5G more chance to dictate their routine work in times like these.
In short, 5G technology offers seamless interactions in real-time not possible with LAN and wireless networks at the moment.
The impact of Coronavirus for tech industry is yet to peak and be correctly measured at a comprehensive glance.
Even though the positives are far less and new at the moment, various mobile application developers can harness the opportunity to create powerful tools revolving around remote work facilitation and project management, digital health checkups and diagnoses, retail businesses and payments, and more.
Imran Abdul Rauf is a Digital Marketing Strategist, employed at CMOLDS, and specializes in content marketing, email marketing campaigns, lead generation, and other aspects of digital marketing. A content enthusiast by the day, and hardcore gamer by night, Imran is also a regular guest contributor at some of the top tech and digital marketing platforms.