The impact of COVID-19 in tech.
As the COVID-19 continue its effect, the tech industry has a mixed impact comparing to other hard-hit industries such as Airlines, Hotel, Tourism, etc.
In this note, we offer some of our insight on which area of tech industries has a positive and negative impact due to the pandemic. While most of them have a negative impact there are some exceptions. First lets us go through the worst affected one.
The worst impact
Tech Conferences: More than 10 biggest tech conferences have been canceled. It is estimated that loss due to this is over $1 billion dollars. Many new tech gadgets and services which were supposed to be launched in these had to be canceled or postponed. Some of the biggest tech conferences that had been canceled include Barcelona’ Mobile World Congress, Google Cloud Next, Okta’s Oktane, Game Developer Conference, etc.
Stock losses: Major tech companies Apple, Microsoft, Amazon and Alphabet, and Facebook have lost a combined $1.3 trillion in valuation since the market peaked. Investors are selling everything in the stock market due to the pandemic. This indicates the recession already while the worst yet to come.
Ride-Sharing Tech companies: As major ride-hailing services like Uber, Lyft, etc. had suspended shared-ride services, the company faith goes into the dark. Their stock prices have felt drastic due to the pandemic and it is just the beginning.
Workplace-collaboration software companies: While work from home has become necessary for most of the employees, video conferencing and team collaboration software providing company are making most of it. Due to the global fallout from COVID-19, there is a huge demand for workplace-collaboration software. The major players include Slack, Zoom, Trello, MS Team and others.
Ecommerce: As almost all the shopping malls and centers have been temporarily shut down, E-commerce businesses are trying to make the most of this situation. For Example, Amazon is the only one of the few companies that stock has increased in the March month by around 3.26% where most of the other tech companies are in heavy loss.
Automation: As almost all of the employees are not in the factories due to the pandemic, it is pushing manufacturers to depend more on automation and digitalization for their future operations to reduce the financial impact from COVID-19 and other economic challenges. This may lead to worldwide unemployment in the future but massive cost saving for the manufacturer. We may see the rise of AI robots taking jobs in the future.