Well-known industrial analyst Michael Pakter said that Microsoft and Sony it is too early to panic over supply chain disruptions caused by the recent outbreak of coronavirus in China.
According to a note published last week by an investment firm Jefferies group, the shutdown of Chinese factories for more than a month could lead to at least a reduction in the starting circulation of the Xbox Series X and PlayStation 5, and in the worst case, the release of non-x-ray systems will be postponed. TechRadar reporters asked Pacter to comment on the words of experts. According to his estimates, Sony and Microsoft will not begin mass production of new consoles until June, when the coronavirus epidemic is likely to be taken under control, but even if the situation does not recover by then, both companies, the analyst believes, will get out of the situation by transferring assembly lines to alternative countries, such as Taiwan and Vietnam, although in this case an increase in the cost of consoles is not excluded.
“If the coronavirus epidemic lasts until June, then this will be a problem. There is a possibility that it will drag on for such a period, but the stock exchange says the opposite. If this were so, then the market would have collapsed due to long-term supply problems” – said Pakter.
Pacter added that companies like Apple really feel the effects of the outbreak, as they have no immediate alternatives to Chinese manufacturing. On the other hand, Sony and Microsoft still have time to find other options.
“I expect Apple to panic if the coronavirus remains a problem in a month, but Sony and Microsoft are quite capable of organizing production in Taiwan and Vietnam (at a price of $ 5-10 higher per unit of goods) to protect themselves.”
At the moment, the number of deaths among patients with coronavirus has exceeded 800. Among the dead, there was also a doctor Lee Wenlianwho first discovered the virus and sounded the alarm back in December.
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