5 Reasons Why Coronavirus Will Disrupt Supply of New Laptops and Spare Parts

5 Reasons Why Coronavirus Will Disrupt Supply of New Laptops and Spare Parts

Posted by Team Recompute on 12th Mar 2020

The coronavirus is ripping across the globe. Starting in China, the virus has made its way to dozens of other countries.

At the moment, there are over 126,000 confirmed cases of coronavirus. The global death toll has climbed over 3,000 as the virus spreads to new continents.

In addition to a public health crisis, there are serious economic consequences from the coronavirus. The stock market has plummeted more than 10% due to virus fears. Of particular concern is the supply of new laptops and spare parts.

Read on to learn how why the coronavirus will hurt business. Explore 5 reasons why it will reduce profits and lower the sales of new laptops.

1. Production Capability in China

One of the most significant issues is the production capability in China. The coronavirus started in China and has decimated the country’s ability to meet global demand for electronics.

There are over 600 deaths in China due to coronavirus. Nearly 32,000 have tested positive and require medical intervention. This includes self-quarantine or hospitalization.

These alarming statistics have caused Chinese manufacturing operations to stop. Many plants are closed until the nation gets a grip on the virus.

2. Global Demand Is Down

In afflicted areas, people are shifting their attention away from consumption. Instead of going shopping, many consumers are staying home and avoiding public spaces.

Naturally, this is resulting in decreased demand and lower electronic sales. Consumers are buying sanitizer and hand soap instead of new laptops.

3. Shortage of Workers

Even when manufacturing plants are reopened, they are not necessarily staffed sufficiently. The fact is that China has millions of workers quarantined in afflicted regions.

This leads to a shortage of workers as they cannot return until cleared by medical staff.

Some manufacturing plants are trying to salvage production capability by importing workers from unaffected regions.

However, this tactic has yet to restore supply to pre-coronavirus levels. The bottom line is that production is ramping up slower than expected. The imported workers are not nearly as productive as the original resources.

4. Travel Is Grounded

Currently, the United States and many other nations have prohibited travel to and from China. You may be wondering, what does travel have to do with the supply of laptops and spare parts?

The answer is that major electronics companies like Microsoft send their best engineers to oversee things like product development. With a travel ban in place, many projects are grounded. Also, completed products may not be signed off on to release for delivery.

5. Uncertainty

There is still so much uncertainty around the coronavirus. Many do not know what comes next and how widespread it may be.

This has resulted in shifting plans for electronics businesses. Perhaps they are putting off a new hire or allowing employees to telework. The end result is a continued contracting of supply.

A Recap of Why Coronavirus Will Hurt Business

The coronavirus is on par with some of the worst pandemics of the past 20 years. It is rapidly spreading around the globe and disrupting supply vs. demand models.