The highly contagious Coronavirus is impacting more than people’s health; it’s impacting businesses. Officials have identified Wuhan, a province in China, as the epicenter of the virus. So far, the Chinese government has tried to contain the spread of the virus by quarantining residents in the Wuhan region. These measures have not been effective. Now the tech industry, unfortunately, is being affected by the disease.
Alibaba, Xiaomi, and Huawei are just of the few tech companies based in China. The country also produces components for other popular tech brands. If the virus continues to spread, it will impact the supply chain for many brands. Already Tesla, the popular electric vehicle company, temporarily shut down its brand-new Shanghai auto plant due to the virus. The e-commerce platform, Alibaba is now alerting consumers to contact suppliers before placing orders.
As a precaution, Facebook canceled its F8 Developer Conference. Google followed in Facebook’s footsteps canceling its I/O developer conference and Cloud Next event. Over 30,000 people have signed a petition to cancel SXSW this year. Since many other tech conferences have followed suit. Canceling these events signal the real fear of the disease.
This February, the S&P 500 saw the largest plunge since the 2008 financial crisis. U.S. stocks lost nearly 12%. Experts are afraid this may be only the beginning of a larger economic decline. Some of the companies impacted were tech companies, including Advanced Micro Devices and Nvidia.
Simply put, the Coronavirus is complicating the way organizations are doing business and how the global economy is performing.
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