Coronavirus disease also known as (COVID-19) is an infectious disease caused by a new virus. The disease caused by this virus includes respiratory illness, flu with symptoms such as cough, fever, and in more severe cases it can lead to difficulty in breathing. The only way to protect yourself is by washing your hands frequently, avoiding touching your face, and avoiding close contact with people who are unwell or have the same symptoms. Coronavirus spreads primarily when someone comes in contact with an infected person, while they cough or sneeze. It also spreads when a person touches a surface or object that has the virus sitting on it and then they touch their eyes, nose, or mouth. Coronavirus has resulted in tragic deaths in many places all around the world. Various parts of Asia have suffered a lot as a result of the disease outbreak. The epidemic spread on the Chinese mainland may unexpectedly impact American businesses: slowing down the supply chain for some goods and services. This may include delays in obtaining some in-demand electronic components as well.
Disruptions in The Global Chain of business
Many repairers of high tech products in the United States depend on China and other nations in Asia for the import of electronic components. Some experts also say the cell phone repair industry might experience temporary disruptions and delays in some cases as a result of supply issues.
The Sacramento Bee recently reported that there have been wider economic impacts because of Chinese quarantine. There have been delays in obtaining products in some phone repair companies and also in certain replacement components as a reason for slowdowns in their customer service.
The mobile phone industry is responsible for contributing billions to the U.S. economy. An increasingly important segment of this business is of repairers. The consumers are affected in other parts of the world due to the conditions that impact manufacturers in China, Japan, South Korea, and Vietnam.
What is the government doing to respond to the Spread of Coronavirus?
The Chinese government reportedly extended some factory closures during early February due to concerns about the spreading epidemic in China. Almost all the industries and tourism issues are facing the impacts of this pandemic. This has caused sporadic disruptions and delays in the availability of some cell phone components worldwide. The Federal Reserve in the United States also announced an emergency interest rate cut in response to the economic impacts of the recent coronavirus epidemic in early March. There has been a global economic slowdown because the trade might accompany the spread of the illness. The rate cut has been decreased to avoid any panic among the masses because of the economic trade.
Interconnected Global Economy
The full impacts of the coronavirus tragedy remain unclear on the U.S. economy. High tech industries today frequently depend upon complex global supply chains, this has been suggested by some cell phone repair stores because of the recent delays.
- Companies have moved their smartphone factories out of China in recent years, relocating to countries that have lower manufacturing costs, like Vietnam or India. These companies include Samsung, Google, Sony, etc. But many of the components used in their smartphones, such as sensors or glass screens are imported. Also, Apple’s supply chain is linked as well, so these companies have to rely on China.
- According to Reuters, at Foxconn plants in Zhengzhou and Shenzhen, where Apple’s iPhones are assembled, only about 10% of employees had returned to work as of Monday. As the factories make up a large part of the global iPhone assembly line, so any further delays could impact worldwide shipments.
- Apple also closed all of its retail stores, corporate offices, and contract offices on Feb. 1, in the mainland of China out of “an abundance of caution.” Apple’s Chinese retail businesses were expected to resume nationwide on Feb. 9 but it seems like those re-openings now have to be delayed indefinitely.
- There was also news in Nikkei Asian Review that Apple was going to release a lower-cost iPhone SE2 in March but that too is delayed now. China is responsible for roughly half of the world’s LCD panels for TVs, laptops, and computer monitors. In the city of Wuhan alone, a provincial capital and commercial hub that is the center of the coronavirus epidemic, there are five LCD factories located. Operations at those factories were disrupted after Chinese authorities placed the entire city under quarantine last month.
Summary:
This pandemic has affected not only China but almost the whole world. We should pray and hope that we get rid of this virus soon so that the trade all around the world can run smoothly.
