The recent outbreak of the COVID-19 virus has affected virtually every industry, including the consumer electronics industry. Published in late February towards the beginning of the pandemic, Forbes released an article titled “COVID-19 Strikes the Tech Industry”. This the second part of an ongoing news research regarding the effects of this virus on the consumer electronics industry. The article notes the potential issues that would arise in the Mobile World Congress (MWC) due to the outbreak.
Tirias Research believes that there will be device shortages in the first half of 2020 due to the increase of cases in significant countries, including China, where manufacturing of consumer electronics is mostly done. Due to factories shutting down and workers staying home to practice safety precautions, manufacturing is coming to a halt. As discussed in class, the stakeholders in this situation are key.
Another concern is that the outbreak will trigger a reduction in consumer spending. The spread and prolonging of the virus outbreak beyond eight weeks could have an impact on the global economy.
But there is hope for the consumer electronics industry as there is still hope for potential growth in 2020. If the outbreak were to subdue in the next few months, the rollout of 5G devices and networks, and the innovation of artificial intelligence (AI) and machine learning (ML) give potential hope for growth within the last few months of 2020. Personally, I think the consumer electronics industry does have the potential to bounce back, as it is a rapidly advancing area and this is just a pause in the production.