As the world struggles with Coronavirus outbreak, the lockdown has become the most implemented and perhaps the most effective way of breaking the chain.
But what has this worldwide lockdown resulted in?
Coronavirus has shaken up the global economy. The only thing that remains for the companies is to decide how they will respond to it. As Coronavirus scare spreads, work-from-home is being encouraged everywhere.
So how do you think is this outbreak affecting Silicon Valley? Let’s have a look.
What does the survey say about the Coronavirus outbreak?
As per the survey conducted by the IPC, a trade association for the electronics manufacturing industry, the outbreak has drastically impacted the supply chain.
22 per cent of the companies said that Coronavirus may result in fewer product introductions this year. The problem gets severe because the epicentre of the outbreak is in China, where most of the world’s electronics are manufactured.
Now let’s see how the outbreak has affected different companies in a nutshell.
Amazon in Seattle has been hit hard by the pandemic and has asked its employees to work from home until the end of March. Not only that, but an employee has also already been tested positive for Coronavirus and is now quarantined.
Amazon has been conducting interviews remotely to avoid physical contact as much as possible.
Another challenge that Amazon faces is the huge demand from shoppers for cleaning supplies. There has been a huge spike in hand sanitizer and cleaning wipes claiming to kill the virus. In times like these, these claims made by manufacturers can be misleading if not verified.
Amazon can’t sell these products without prior review and approval from the Food and Drug Administration (FDA). As a result, it is cracking down on such products and prohibiting its listing or sale.
Apple wasn’t immune to the impact of the virus outbreak either. It had to close all its retail shops, corporate offices and contact centres in Mainland China after the outbreak.
Although they have all now been reopened, the problem still exists in the form of production constraints which has prompted a shortage of iPhones in stores.
Apple’s manufacturing partner sites are coming back online but the developments are too slow and iPhone shortages around the world will therefore temporarily affect revenue generation worldwide.
Meanwhile, Apple is prioritizing apps from hospitals and government agencies while rejecting those related to Coronavirus.
Foxconn had to shut down its factories among the Coronavirus outbreak, although it expects to return to work by the end of this month.
Chairman of Foxconn, Young Liu on Tuesday said, “As of today, the production resumption rate has reached 50 per cent of seasonal capacity.”
He further said that the Coronavirus is creating uncertainties for the company’s business. Foxconn has a factory in Wuhan as well, which has been ground zero for the virus outbreak although it doesn’t produce more than a per cent of the total revenues.
Once San Francisco confirmed its first Coronavirus case, Facebook started encouraging its Bay Area employees to work from home.
While it cancelled its annual f8 developers’ conference, it’s also trying to prevent the spread of rumours and misinformation related to COVID-19 on its platform.
On a positive end, Facebook has offered as many free ads as they need for their Coronavirus response, as per CEO Mark Zuckerberg.
Just like other great tech companies, Google also has suffered the impact of the Coronavirus outbreak.
Google had to cancel its I/O developers conference which allows users from around the world to exhibit their latest Android innovations. This, in turn, helps them to see what is in store for the next version of their mobile operating system.
Apart from all these, Google is also taking precautions to ensure the safety of its employees. It has allowed its Bay Area and Seattle employees to work from home.
As per the reports of Bloomberg, Microsoft has confirmed that two of its employees have tested positive for COVID-19.
Following this, Microsoft asked its California and Washington based employees to work from home.
Showing a welcome gesture, Microsoft has decided to continue to pay all their vendor hourly service providers their regular pay even if their services have been reduced.
The next question that naturally comes to our minds is whether Microsoft as well has cancelled any conference or not.
So far, Microsoft has not cancelled the Build Developer conference which has been scheduled for May 19 in Seattle.
Samsung has shut down its facility twice to disinfect it after six people working in and around it were tested positive for Coronavirus.
As per the reports from Reuters, Samsung will move some of its production to Vietnam temporarily.
This Samsung facility makes smartphones for the US and Korean market.
Just like most other tech companies, Twitter too asked all of its employees around the world to work from home. After encouraging its employees at first, Twitter made remote working mandatory.
And relieving its employees from the stress of payments, Twitter said it will pay its employees while travel restrictions are imposed.
Reports from Twitter say that #Coronavirus has become the second most used hashtag of 2020.
So that is all about the COVID-19 and how tech companies are dealing with it. Until next time. Stay home, stay safe!