Due to the coronavirus pandemic, the whole world is on a standstill. Except for the essential good like food, medicine, etc, pretty much every industry is currently suffering from losses since they cannot operate in this global lockdown. One of the biggest industries that got affected by this pandemic was the tech industry.
Production of many tech products like smartphones, laptops, game consoles, etc, have slowed down due to the shortage of parts and lack of labour soon the production might even stop completely if the lockdown continues for a few more months. Market analysis and research firm name IDC has estimated an overall drop in the revenue of up to 5 percent globally in the IT industry which at first might not seem like much but when considering that the global revenue of IT industry alone is in billions every percent counts.
The IDC analysis states that while hardware businesses will face the maximum impact, the trickle-down effect will also eat into the software and services industries across the world. According to the India Brand Equity Foundation, the IT industries of India accounted for $177 billion in 2019. While it is difficult to project how the IT industry may grow or shrink in overall volume through 2020 due to the coronavirus outbreak towards the end of the financial year, this figure itself gives us a rather worrying estimate.
Many major events related to the tech industry like Consumer electronics show(CES) and Electronic Entertainment Expo(E3) have been cancelled as a precautionary measure to limit the spread of coronavirus.
With all of these alarming incidents happening in the tech industry, it remains to be seen how global Tech majors such as Google, Apple, IBM and other stakeholders in the industry innovate and readjust to new economic parameters in order to weather the storm.