The outbreak of COVID-19 has caused severe damage to multiple sectors and businesses. There are numerous countries that have faced the destruction of this pandemic. Hence to put an end to the spread of this deadly disease various countries have decided to call for a complete lockdown. Though the solution of lockdown is very effective, but it has forced many businesses to stand on the verge of the downfall. One of the businesses which have been majorly affected by the COVID-19 pandemic is the sector of electronics and smartphones. Here are some of the points that show the effects of the lockdown on it.
How COVID-19 outbreak has affected the production of smartphones?
There are various companies like Samsung, Apple, and Sony that are in a continuous fear about the future of their business. Due to the outbreak of coronavirus, many big organizations are unable to continue the production of a new generation of smartphones. This is one of the major reasons due to which many smartphone companies have delayed the launch of their latest product. Hence, various organizations are experiencing a slowdown in their businesses.
According to research it is estimated that the production of smartphones has seen a major fall of 30% in the first half of 2020. The COVID-19 has affected the whole cycle of the supply chain of smartphones. Previously, before the outbreak of the pandemic it was predicted that the business of the smartphone production will see a boom in the year 2020.
It is observed that then after the completion of the lockdown process the business of the smartphones may get a rise. This is because various users may want to invest in the new product. There are several companies whose production plant is situated in China. Hence, various companies are still facing a downfall in their businesses. According to a study, the long term effect of the COVID-19 outbreak may benefit the industry as the demand will increase immensely. Therefore, it is expected that the manufacturing industry will bounce back.
Spike in the usage of smartphone applications
Apart from this, the latest studies show that there is a huge spike in the usage of mobile applications during the period of lockdown. Applications like Zoom, Webex, Netflix, and Amazon have experienced huge traffic in these times. Hence, the market for smartphone applications is expected to rise a little in the lockdown period and it will then achieve stability. This is because the production of mobile applications requires research and deep study which is not possible during the lockdown. However, there are some researches that also suggest that saturation in the market will stay for a short period before achieving maximum growth.
The COVID-19 outbreak has affected numerous industries but the technology sector has faced the least damages as compared to others. This is because the demand in the sector is very high. In recent times the supply has become the lowest but after a certain time this industry will experience a great bounce.