Wuhan coronavirus: health and economic emergency. Problems for Apple and Xiaomi

Wuhan coronavirus: health and economic emergency. Problems for Apple and Xiaomi

The new Wuhan coronavirus, AKA 2019-nCoV, continues to require extraordinary and sometimes drastic measures. On the one hand, the technology is trying to help contain the epidemic as much as possible, for example thanks to the remote diagnosis stations activated by ZTE with 5G technology; on the other hand it must suffer some repercussions, as on the other hand all sectors. The latest news from China, for example, is that Xiaomi has decided to close some of its physical stores from today, January 28, until Sunday February 2.

This information has been officially confirmed, while the possible cancellation of the Xiaomi Mi 10 debut event is still an indiscretion. As with the flu virus, even 2019-nCoV is easily transmitted from man to man. In short, gathering large quantities of people in a closed place greatly increases the risk of infection. Yesterday we reported the decision to suspend the largest professional league of League of Legends, while today the well-known leaker @Xiaomishka says that the new Xiaomi flagships could be presented via streaming, in an online event. The company is still evaluating, and in fact it is difficult to make long-term predictions: the situation of the virus evolves very quickly, with the infections (and unfortunately with them the deaths) that increase considerably from day to day.

The coronavirus could also impact Apple's vendor manufacturing capabilities, according to Bloomberg. Specifically, the newspaper says that the production of the next cheap iPhone, known for now with the provisional names iPhone 9 and iPhone SE 2, may be at risk. The factories of the Apple suppliers – mainly two, Foxconn (Zhengzhou region) and Pegatron (near Shanghai) – are far from the epicenter of the epidemic, but cases are beginning to be confirmed in their vicinity. If the situation gets worse, the government could impose the closure of factories (always for the speech of the many people in a closed place).

Apple tends to diversify its own supply chain just to avoid emergency scenarios like this, but the effectiveness of the strategy depends on how much the epidemic will worsen. In short, in the short term the Apple (like anyone who manufactures products in China, on the other hand) should be reasonably safe, but it is perhaps the order for 15 million cheap iPhones, whose mass production is expected to begin around the third week of February. According to rumors, the device should be presented relatively quickly, probably as early as March.