Coronavirus outbreak effects on Chinese tech companies

Coronavirus is fast-spreading to the other part of the world since its first discovery in Wuhan province, Hubei, China. Covid-19 has been the subject for discussion all over the world.
Huawei Beijing store coronavirus
Huawei Beijing store coronavirus

Coronavirus is fast-circulating in other parts of the world since its first discovery in Wuhan province, Hubei, China. Covid-19 has been the theme for discussion all over the world. It has taken centre stage of all discussion which the tech industry is not an exception to.

With China being the aetiology of the caved-19 virus, it is discernible that the top Chinese telecommunications service companies will be greatly affected. Companies like Huawei, Lenovo, Oppo, Oneplus, Vivo, Xiaomi and ZTE are already feeling the force. Apple, two weeks ago instructed that all its stores outside Greater China should be closed.

Coronavirus effects on Huawei

The tech world will be extremely apprehensive about one of the tech giants like Huawei. Even so, after the Huawei embargo by the United States of America, the Shenzhen, China-based telecommunications giant has since fought the case in the USA court. With the coronavirus outbreak, the fight to overturn the ban has now become more difficult than ever.

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The lawyer for Huawei, Thomas Green has recently stated at a press conference that due to coronavirus, it has become hard for Huawei’s defence team.

Now we can’t visit our clients, and this is going to inevitably impact the efforts of our progress on this.

Coronavirus pandemic will reduce the Huawei chances of beating the case heard on time. This equally means Huawei would have to keep producing phones without major Google apps.

Factory Shutdown in China

There is presently a limited supply of mobile phones in China dues to factory shutdowns. Producers of mobile devices and chipsets in China are currently unable to operate due to the coronavirus outbreak. Tech companies like Oppo, Oneplus and Xiaomi have all been struck by this great pandemic.

Coronavirus

It is for a fact that Oppo, Xiaomi, Onelpus and Vivo assemble their products in India, but they depend on the factories in China for other components like battery, display and chipset. The state of affairs has caused these companies to slow down in executing their plans for the 2nd quarter of the year 2020.

Wuhan province, where the coronavirus first started is an industrial powerhouse of most Chinese tech companies. Wuhan is a port city of nearly 11 million people in central Hubei province is currently locked down. Wholesale markets for smartphones are all shut down. This shut down as a upshot of the virus, has put the brakes on the movement of goods and services.

The sad look of the coronavirus pandemic is there is still no cure for the covid-19 virus.