Coronavirus Has Made Tech Industry to Face Loss of More Than $500 Million

Coronavirus is creating a real challenging situation in the world. It emerged from China but now, it is affecting the people in the world. Due to the coronavirus, we are seeing some negative impacts on the world’s economy.

Anyhow, the major impacts of the coronavirus are on the economy of China and other Asian countries. Its reason is that China and other Asian countries are facing loss in the tourism, entertainment sectors and retail.

Coronavirus is also lasting negative impacts on the tech industry. Its reason is that due to the fear of the coronavirus, lots of tech companies are postponing their events and conferences.

Some are moved online and some are cancelled at all.

Effects on World’s Economy:

Along with attacking human beings, coronavirus is also affecting the world economy. The upcoming three major events in the tech sector were the conference of Google I\O, an event of Facebook F8 and Mobile World Congress etc.

Due to the fear of the coronavirus among the people, all of these events are cancelled. After the cancellation of these events, a data intelligence company PredictHQ has predicted about its loss.

According to this data intelligence company, the tech sector has to face a $500 million loss due to the cancellation of these three events. This loss is estimated in the form of the cancellation of the airline tickets, hotels and other services providers.

Anyhow, this company doesn’t have any idea about the loss that Google, Facebook and mobile companies have to bear.

The major loss of the tech industry is due to the cancellation of the Mobile World Congress. This loss is almost $480 million.

Its reason is that this was a big conference of the experts in the mobile industry and there was a possibility that 100,000 people relevant to the mobile industry have to attend this conference.

This conference had to held in Barcelona in the last month. All the airline tickets, hotel tickets and transportation bookings are cancelled.

By the cancellation of these things, the tech industry has to face this loss. It was also expected that some major announcements were made at this conference. As this meeting is cancelled, these major announcements are also postponed.

As a result, different mobile phone companies have to face millions of dollars lost due to the delay in their products.

Cancellation of Conferences:

Along with the cancellation of the Mobile World Congress, the tech industry has to face major loss due to the cancellation of the Google I\O meeting.

It was the conference of almost 5,000 developers in the tech industry. As this meeting is cancelled, they have to cancel all the airline and restaurant tickets.

As a result, the total loss of the cancellation of this meeting is nearly $20 million. Moreover, Google was going to make some essential announcements at this meeting.

As this meeting is cancelled, so, these announcements are postponed and we can’t get an idea about this loss of Google. Anyhow, the total loss of these two events has reached up to $500 million.

Shifting of Physical Events to Online Events:

Some physical events were shifted online. In these events, there come Facebook F8 and Adobe Summit. Anyhow, they have to cancel their airline and hotel tickets but these events were not as big as Mobile World Congress.

Therefore, these events have not created some major issues for the tech industry. Moreover, they have conducted these events online and they have involved all the members of the conference in these events via video links.

That’s why they were able to make necessary announcements and to acquire the required outcomes.

As a result, these events have also saved the industry from these kinds of losses. It means that these companies continue their work with the previous pace without facing any kind of delay.

As PredictHQ is counting just loss of the airline tickets and accommodation expenditures, most of us don’t have enough idea about the loss of the event organizers and event sponsors etc. We are also unaware of the loss of these events on the local economy.

Along with these conferences and events, some other conferences and events were also scheduled in March. These conferences and events are also postponed.

An event of 30,000 game developers was scheduled in March. This event is postponed and this event is not included in the data set.

According to PredictHQ, the percentage of the cancellation and postponing of the tech events is also increasing in this month. Due to this reason, we are also observing a decrease in the revenue of the developers.

It is expected that the revenue of the tech developers will be decreased up to $29 this month.

Author Bio:

This article is written by Joe Marchant who is a tech blogger and working with Cheap Dissertation Writing Service as educationist.