As we all know about coronavirus, it has hit china very badly and now its impact is seen on gadgets and other industries of India as well as other countries also. We all know that China is the world’s second-largest economy for components, sub-assemblies and even other products. Many major companies of different countries depend on China for gadgets and appliances. Now India is also fearing with the supply disruption of and its impact on gadgets and electronic products. This disruption may lead to a negative impact on price as well as revenues and the people are also saying that coronaviruses’ effect on gadgets industries will be severe. If the situation will remain the same it will also affect the GDP of many countries.
Impact of coronavirus on India
Coronavirus has become a reality in India, about 29 cases confirmed and 2 people have died throughout India by the first half of Tuesday, and many be many more to be confirmed. All this affect the business of India as well, India is on second stage of coronavirus and many meeting and media event have been cancelled due to this. Even now the world health organization has given the official name of coronavirus as COVID-19.
Cancelled event and meeting of Gadgets industries in India
- Spotify, a Swedish music streaming service has rescheduled all of his events in India. This included one media event also that is scheduled in Mumbai on 24 March. Spotify said they have decided to reschedule the events as they want to ensure one’s health and safety are our priority.
- Amazon’s Cloud arm Amazon Web Services (AWS) has also announced to cancel its flagship Summit in India and rescheduling it from April 7-9 in Mumbai due to growing concerns of coronavirus.
Gadgets industry in India worried about coronavirus impact
Companies and industry bodies are worried and that BusinessLine spoke to said that alternate countries for these supplies or any other solution seem unlikely to transpire. They said they are assessing the situation and finding the option of what can be done. But there is a major thread going on in China outbreak of Coronavirus has claimed over 1,000 lives in China have increased its number to 44,000 confirmed cases. Due to this China has announced a new year holiday till 17 February and this will have a great impacted on several more industries, including gadgets especially smartphones, automobiles, television, smart speakers, video game consoles, etc.
Impact of coronavirus on gadgets in India
The impact of coronavirus on gadgets and appliances lead to an increase in prices. All large manufacturers like LG, Voltas, Samsung, Haier, and Panasonic have decided to increase its price up to 3-5% across models. This means there would be a hike of Rs 3,000-4,000 price for premium and large capacity models. All companies have announced a 3-4% price hike for microwave ovens, refrigerators, ACs and washing machines from the coming week due to short supplies of the component from China. Even the shipment has increased and budget duties increase too on the component like on the refrigerator and air-conditioner compressors increased up to 10% to 12.5%, on the motor of washing machine the import tax has gone up from 7.5% to 10%. Even the television prices will be increased up to 7-10% from March due to a 15-20% jump in the there main component.
Leading people thought about the impact of coronavirus on gadgets industries
- Kamal Nandi the Business Head and Executive Vice President of Godrej Appliances and presently the president of the Consumer Electronics and Appliances Manufacturers Association (CEAMA) said “If the situation persists, it will be followed by production cuts, postponement of product launches in the next quarters and revenue losses. From the consumer lens, it will lead to availability concerns and price rise,” that means if there is any delay in the supply of components beyond 17 February, it could lead to setbacks in production of April, which will affect the revenues of next year also.
- Anuj Poddar, the Executive Director of Bajaj Electricals said “Even Indian manufacturers will be impacted because many of the components of what we make in India come from China. The plant will be in India, but the raw materials will be coming from China, and even if one item is not available, that’s an impact (on local manufacturing too),”.He also added Bajaj Electricals has an office in China, and its employees have been asked to work from home to reduce the impact of coronaviruses on gadgets.
- Pankaj Mohindroo the Chairman of India Cellular & Electronics Association and the apex industry body of the mobile and electronics industry said that until now there is no impact of industry stock in India “But, this stock would last only till the second week of February. The mobile phone industry has low inventory and China has a major part of the supply chain. The coming week is crucial for the industry and if things do not get better in China and if the factories do not resume, then there will be an impact on the manufacturing of gadgets/electronics in India as we are dependent on the Chinese supply chain ecosystem,”.
- Xiaomi spokesperson said that the company is adopting measures for there employee and partners’ safety and the immediate impact of the short supply of products due to the coronavirus might cause some negative pressure on the prices of the products. But we are taking action to reduce the impact of coronaviruses on gadgets.
- Tarun Pathak the Associate Director and Counterpoint Research told IANS “The long-term impact of Coronavirus on gadgets will be severe and upcoming smartphone launches of various brands will find it difficult to maintain their time-to-market planning in the wake of delay in SKD arriving in India,”.Currently, there are only 12 percent of SKD components are being sourced locally while the other 88 percent come from China, Taiwan, Vietnam, and Japan but China being the biggest supplier.
- Foxconn, a key manufacturer for Apple, also tells that due to coronavirus 2020 revenue will be impacted the gadgets industries will have a severe loss as there have factories are in India, Vietnam and Mexico are fully loaded as they are planning to expand overseas.
Impact of coronavirus on gadgets in the world
Many gadgets companies have stopped the opening of there office due to the impact of epidermic. The gadgets companies like Google, Apple and many more have shifted there dated to reopen office in almost some parts of countries. Some gadgets from Apple Inc., Facebook Inc., and HP Inc. are in short supply due to coronavirus outbreak’s effect on the global manufacturing system. It will have a wide impact on gadgets and technology.
- The iPad Pro tablet is seeing limited availability at stores of major cities like the U.S., Australia and Europe. The 12.9-inch iPad Pro with 512 gigabytes of storage and no cellular connectivity is sold out at all Apple stores in the Los Angeles area.
- Facebook’s online store showed the Oculus Quest virtual reality headset with 128 gigabytes of storage is “unavailable” to purchase, while the Oculus Rift S is also sold out online.
- HP’s website showed some Envy, Pavilion and Slim desktop computers are out of stock, as are some of the company’s Sprocket mobile photo printers.
- Amazon.com Inc.’s website for its products like the Echo speaker and Kindle e-reader showed no major signs of product constraints.
- As China is the world’s largest PC markets there will be a 12% decline of PC this year as compared to 2019. There will be least a 3.3% drop and max 12% dip in the volume of PCs that will ship globally this year.
Impact of coronavirus on other industry in India
Impact of coronavirus on India’s IT industry
India’s top IT firms have a large presence in China like TCS, Wipro, Infosys and HCL.these company’s employees have asked to work from home. So it a major thing that India IT industry will also be affected but up till now, India’s $185 billion information technology (IT) industry says that it has been minimally impacted so far. But 2-3 weeks are critical, said by Akhilesh Tuteja the Global Cyber Security practice co-leader at KPMG
Impact of coronavirus on India’s Automobile industry
The supply restrictions from China have started adversely affecting the Indian automobile industry will have a negative impact on the automotive component and forging industries in India. About 27% of India’s automotive components are imports from China and currently the OEMs have reduced there production plan for February and March due to a shortage of components. So there will be around 8.3% of the decline in the vehicle this year.
S. Muralishankar the president of Association of Indian Forging Industry (AIFI) said, “The Coronavirus is expected to have an impact on the Indian automotive industry and hence also on the automobile component and forging industries, which had already reduced their production rate due to the market conditions and on account of the impending change over to BS-VI emission norms from BS-IV from April 1, 2020.”
Impact on coronaviruses on India’s Pharmaceutical industry
The outbreak of coronavirus has hobbled Chinese factories that supply India’s vast drug ingredients for antibiotics and vitamins have global shortages. Drugmakers of India are struggling to get vital raw ingredients for common antibiotics and vitamins that come from Chinese factories. Even there is a shortage of drugs in the country’s factories also. As most countries rely on India’s drug makers to supply generic drugs are in big problems. India has stopped exporting of 26 drugs and drug ingredients, mostly antibiotics like tinidazole, metronidazole, chloramphenicol, erythromycin salts, neomycin, clindamycin salts, and ornidazole without explicit government permission as the government wanted to ensure an adequate supply of medicines for Indians before allowing exports. Other drugs on the restricted list include the painkiller acetaminophen, the hormone progesterone, the antiviral drug acyclovir, and the vitamins B1, B6 and B12. Over the longer term, the Indian government is considering a long-stalled plan to make more drug ingredients domestically and reduce the country’s reliance on Chinese suppliers.