A leading data and analytics company, GlobalData has predicted that many technology companies across the world may not be able to survive the crisis posed by the emergence of the Coronavirus, also known as Covid-19.
“The coronavirus (COVID-19) is by far the most significant theme to affect the technology industry in 2020. It will put incredible strain on the world economy, which will be effectively halted for three months or more. Many companies will not survive this initial phase. Almost all others will suffer a significant drop in revenues,” it said.
It advised that telecom equipment companies must minimize risks to the supply chain, as the COVID-19 crisis will affect the ability of these companies to both acquire manufacturing materials and deliver finished goods.
“Most companies operate a distributed supply chain, with manufacturing, component suppliers, and logistic operations located in regions that have been significantly impacted by COVID-19. They are now busy minimizing the potential impact on their operations by taking action to reroute orders and add manufacturing capabilities around the world,” noted Laura Petrone, Senior Analyst at GlobalData.
The report, ‘Tech, Media & Telecom Trends 2020’ was published to reflect the impact of COVID-19 on 17 separate TMT sectors. Its analysis provides insight into the impact of COVID-19 on leading companies, as well as the impact of COVID-19 across 17 different technology sectors. It discusses the short- and long-term impacts of COVID-19 on each sector and ranks on a company-by-company basis the individual impact of COVID-19 alongside nine other themes that affect that sector. All sectors will be negatively impacted.