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Coronavirus halts tech shipments

The World Health Organisation has welcomed efforts by China to investigate and contain the current outbreak of coronavirus.

Australia relies heavily on Chinese imports for technology and Geoff Augutis from Queensland Computers warns there may be delays.

An event like the recent Coronavirus outbreak can be a startling reminder for the world about just how much we rely on China.

This is doubly so when talking about the tech and electronics space.

Although many of the big tech companies are famously American or Japanese, like Apple and Samsung, the truth is that manufacturing costs to be made in China are too appealing for most to pass up.

This leads to almost all of the world's tech having a reliance on China in one form or another.

Over the past seven days most of the big brands in tech have released announcements regarding the virus and telling resellers to expect delays.

In some cases they have stopped whole shipments due to concerns of contamination.

This means no stock.

We do know that things will start shipping again sooner or later, however on the back of a busy school season, we will see drama.

Some manufacturers such as Apple have already seen stock shortages.

With the nature of supply and demand these ceased shipments and in some cases breaks in production will see prices rise.

It is likely that the remaining stock in Australia will hold out in short term but new ordering will come in at a higher price if and when stock is available.

How will Coronavirus affect tech in Australia?

For the everyday consumer there is really no need to be alarmed unless you are in the market to buy now.

If so, securing your purchase sooner might be wise.

For businesses who have ongoing requirements, we will just have to weather the storm and know that options may be limited, prices may increase and delays are expected.

Unfortunately for us, even if stock starts production again and goods start to ship, Australia will be slow to recover.

We are a small percentage of world demand and are often last to receive stock. 

Expect delays and price increases, be patient and hopefully soon things will return to normal. 

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