Coronavirus forces to close hardware factories in China

The one try for control the expansion of Coronavirus, the Chinese central government has ordered the closure of entire cities. And of course, when cities with more than 10 million inhabitants are blocked, it is natural that the factories end up running out of labor, since many of the workers live on the periphery and cannot access the cities because of the blockades.

Again, rising prices

According to a report issued by ZeroHedge, the Chinese government has ordered the closure of several major factories in the country, including big names in the field of technology and hardware such as the giant Samsung or Foxconn, who have manufacturing contracts with the world's largest technology companies to manufacture their products, such as the Apple iPhone. A third name that has nothing to do with hardware but is worth mentioning is the pharmaceutical giant Johnson & Johnson.

The closure of these factories is stipulated for at least between one and two weeks, which will mean that your inventories are likely to be empty and then there will be product shortage (Because it is not only that the factories are not producing, it is that they are not getting raw materials), extending this situation to at least a month and a half and that taking into account the best case.

And you know what this means … if a power outage of a few minutes already raises the price of technology products, imagine a blockade of several weeks. Product prices will rise hopelessly, and the forecast is to rise quite a bit, if not to absurd limits (Which has already raised some theories that say that this outbreak of the Coronavirus is caused to destroy the economy, but we will not go into that).

The fact is, and returning to what concerns us, that with the factories locked, a rise in the prices of components and equipment is imminent, so if you were waiting to acquire a new piece of hardware, the recommendation is to do so as soon as possible, before prices start to rise.