OPINION: The tech sector is already feeling the fallout from the coronavirus outbreak -- especially 5G.
The slow 5G network rollout was already causing confusion and disappointment for tech investors, but a sudden sickness has made it worse.
“With the epidemic arriving at dawn of 5G’s mainstream deployment phase, the coronavirus has the potential to disrupt the progress of the next-generation wireless standard, as the crisis slows or threatens to slow the production of key smartphone components, including displays and semiconductors,” Omdia analysts wrote last week.
That progress already was running slow before coronavirus, it seems. Xilinx Corp. XLNX, -2.31% — which sells chips for 5G base stations — said in its January earnings report that there was a pause in sales for infrastructure. Ominous warnings about the effects of coronavirus have turned into a chorus in more recent tech earnings reports, with Alibaba Group Holding Ltd. BABA, -2.50% Chief Executive Daniel Zhang going as far as describing it as “a Black Swan event.
“Unfortunately, the average consumer needs to learn more about this to know what to buy and what not to buy,” O’Donnell said.
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