IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

LG pulls out of MWC amid coronavirus fears

The move is intended to protect employees from having to travel internationally

LG has withdrawn from this month’s upcoming Mobile World Congress (MWC) – hosted by GSMA – to protect its employees from the coronavirus outbreak. 

“The decision removes the risk of exposing hundreds of LG employees to international travel which has already become more restrictive as the virus continues to spread across borders,” said the company in a statement. 

Chinese mobile device and networking equipment manufacturer ZTE was also rumoured to be absent from the conference; the company has since confirmed, however, that it plans to attend. 

The MWC will go on despite LG’s exit from the event. GSMA plans to enact several infection control measures for the conference, which include increasing onsite medical support, providing heightened disinfection programmes for high-volume touchpoints, and relaying public health advice and guidelines to all participating members. 

GSMA further expanded upon its initial proposal yesterday to include a ‘no handshake’ policy, which will be enforced throughout the event. 

Although LG’s exit from the MWC indicates ballooning international concern, the coronavirus’ impact has already disrupted major supply chain production across China, where the outbreak started. Factory closures that began at Chinese New Year have been extended to 10 February in order to try and halt the spread of the virus. 

The chance for a timely reopening diminishes as the death toll continues to rise, with municipal lockdowns hampering the transportation of people and supplies throughout the country. Primary iPhone supplier and Apple partner Hon Hai Precision Industry recently cut its original 2020 revenue growth outlook from a 3-5% range to 1-3% in response factory closures. 

“Hon Hai’s lower 2020 sales growth outlook likely reflects the severity of disruption to its operations from the coronavirus outbreak,” noted Bloomberg Intelligence analyst Matthew Kanterman. “The NT $111 billion reduction in sales at the midpoint of the range vs. the prior midpoint is equivalent to one week of revenue, accounting for the extended factory shutdown imposed by the Chinese government.”

Featured Resources

Accelerating healthcare transformation through patient-centred medtech solutions

Seize the digital transformation opportunities to streamline patient care and optimise patient outcomes

Free Download

Big payoffs from big bets in AI-powered automation

Automation disruptors realise 1.5 x higher revenue growth

Free Download

Hyperscaler cloud service providers top ten

Why it's important for companies to consider hyperscaler cloud service providers, and why they matter

Free Download

Strategic app modernisation drives digital transformation

Address business needs both now and in the future

Free Download

Recommended

Podcast transcript: The best bits of MWC 2022
Technology

Podcast transcript: The best bits of MWC 2022

11 Mar 2022
The IT Pro Podcast: The best bits of MWC 2022
Technology

The IT Pro Podcast: The best bits of MWC 2022

11 Mar 2022
IT Pro News In Review: Compromised Nvidia data, protesters boycott Russian tech, Conti data breach
hacking

IT Pro News In Review: Compromised Nvidia data, protesters boycott Russian tech, Conti data breach

4 Mar 2022
MWC 2022: Ukrainian protesters call for Russian tech boycott
cyber warfare

MWC 2022: Ukrainian protesters call for Russian tech boycott

1 Mar 2022

Most Popular

Empowering employees to truly work anywhere
Sponsored

Empowering employees to truly work anywhere

22 Nov 2022
Larger monitors aren't all they're cracked up to be
monitors

Larger monitors aren't all they're cracked up to be

3 Dec 2022
Defra's legacy software problem 'threatens' UK gov cyber security until 2030
Business strategy

Defra's legacy software problem 'threatens' UK gov cyber security until 2030

6 Dec 2022