Apple may not be a top 10 company by the end of the year, according to a new report. The spread of coronavirus has put a huge strain on global markets and supply chains and tech giants including Apple will suffer as a result.
A new ‘Tech Media & Telecom Trends’ report from GlobalData has explained the potential extent of the virus’ effects on the technology industry.
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“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 significant drop in revenues,” the report says.
Some analysts believe that Apple’s reliance on Chinese elements of its supply chain has been shown to be a potential weakness of the company. That reliance has apparently seen Apple suffer more than some of its competitors during the crisis.
David Bicknell, the principal analyst in the thematic research team at GlobalData, says:
“Consumer electronics firms’ supply chains rely on Chinese components. As China, the source of the COVID-19 outbreak, slowed down and then stopped, supply chains were disrupted. Apple, with more than 90% of its products made in China – and 18% of its revenues generated there – is one of those that suffered, with its ranking in GlobalData’s consumer electronics thematic scorecard tumbling from No. 4 to No. 14.
“The economic contagion caused by COVID-19 will affect general consumer confidence and dampen demand for electronics until the health outlook looks brighter. However, there are some bright spots in the gloom. Drones are now being used on the front line in China, Spain and the US to deliver medical supplies and to chastise loitering citizens to get indoors and self-isolate. Moreover, 3D printing is coming to the rescue for hospitals urgently needing spare parts for respirators. Eventually, when life has returned to normal and consumers have the confidence to spend, there will be increased spending on devices.”