Global electronics Industry impacted by COVID-19
Supply chain and production levels slowed by affects of pandemic
Prior to the COVID-19 pandemic, a modest growth rate in the electronics market was witnessed globally. During the pandemic, the global electronics industry has faced a dual impact, according to a report by ResearchAndMarkets.com.
The production facilities of the electronics parts have been halted owing to the logistics slowdown and unavailability of the workforce across the globe. On the other hand, various e-commerce companies all across the globe have discontinued the delivery of non-essential items (including most of the electronics products), which is affecting the electronics industry.
The report analyzes the global electronics industry on the basis of product type, application, and geography (North America, Europe, Asia-Pacific, and the Rest of the World). Based on product type, the market is classified into DRAM, SSD, MCP, processor, image sensor, and others. Based on the application the market is analyzed on the basis of automotive, communication equipment, enterprise system, industrial, and personal electronics. Personal electronics segment is expected to be most affected due to coronavirus pandemic.
Lack of sufficient staff
Geographically, China has been hit hard by this spread of the virus as the country is an epicenter of the COVID-19. Not only China, several major economies including the US, Italy, France, Spain, Germany, and India are also affected by the COVID-19 outbreak and so is their electronic industry. Research by the American Chamber of Commerce in Shanghai (AmCham Shanghai) found that two-thirds of US businesses operating in China expect demand to be lower as a result of COVID-19 due to lack of sufficient staff. The shutdown of retail shops and showrooms of major brands, supermarkets, and hypermarkets for a definite period of time is further anticipated to affect the sales of various electronics products.
Apart from this, COVID-19 has also disrupted the global supply chain of major electronic brands. China is the largest producer and exporter of various electronics input supplies that are essentially used to produce finished electronic goods. The ongoing production halt in China has forced the other electronic manufacturers based in the US and Europe to hold the production of the finished goods on a temporary basis, which in turn leading to the gap in the demand and supply of the electronic products.
Major firms impacted by COVID-19
Some of the major companies in the electronics companies to get affected due to COVID-19 include Apple Inc., Canon Inc., GoPro Inc., Hitachi Ltd., Huawei Technologies Co. Ltd., LG Electronics Inc., Nikon Corp., Panasonic Corp., Samsung Electronics Co., Ltd., Toshiba Corp., and several others.
The market players are taking the necessary steps in order to reduce the adverse impact of this crisis. For instance, Apple Inc. delayed the launch of the iPhone 9 due to this pandemic outbreak in China. The company also announced that it would not meet previously announced sales projections for the first quarter. Both Hyundai and Nissan have announced production suspension in the South Korean plant due to the delay of the electronics parts.