The epidemic of SARS-CoV-2, otherwise known as coronavirus (COVID-19), is already affecting retail and technology markets. The coronavirus impact on the tech market has already begun with major brands such as Apple and Nissan reporting knock-on effects due to their supply chain and production dependency on China. How fast and how great of an extent can we expect to see similar impacts expand across industries? The timing of when the outbreak can be brought under control will heavily determine the severity of market disruptions.
Coronavirus (COVID-19) impact on the tech market is a global issue
Most major manufacturers rely on parts or production capacities from China, but China’s workforce and manufacturing capability have been hit hard. China has more than 75,000 people infected with COVID-19 as of Feb 20th, majority of the workforce is staying home. Blue-collar workers are just now cautiously returning to their manufacturing sites after being away for some weeks while office employees are preferring to compensate by working from home. The coronavirus impact on the tech market is putting a huge pressure not only on the global supply chain but also on the retail and service industries.
While some manufacturers and retailers are able to live off their stocks for a certain time, the scarcity of available products will become an issue very soon. This is especially so for the tech industries even with manufacturing capacities in China starting to produce again. The question is whether consumers will be willing to postpone purchases of out-of-stock items or whether they will consider an alternative product that is available right away.
Although some companies are already making plans to diversify their sourcing, the supply impact will be unavoidable in the short term. Countries neighboring China might benefit economically from these supply chain and production moves, especially those with strong manufacturing

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