The coronavirus outbreak that originated in Wuhan, China, might make more than international travel difficult as Sony warns its investors that the virus could have a material impact on their bottom line this year.
As many of your know, Sony depends on pretty extensive supply lines in China to keep its lines moving and its image sensor conduit is particularly vulnerable to this.
Sony’s Chief Financial Officer Hiroki Totoki said, “It may negate our revised earnings outlook. Depending on the future progress of the virus, we cannot deny that our production and sales supply chain for the image sensor and electronics business could be affected enormously.”
And it’s not just the cameras that will be affected. Sony Alpha Rumors also quotes a report that says, “At present, Sony assumes the virus may have the biggest effect on its smartphone image sensor and module parts production, as well as production of its PlayStation 4 gaming hardware, depending on when its plants are back in operation.”
While Sony has not explicitly said its image sensor supply is coming under strain, like we said above, it doesn’t take much effort to read between the lines. The ultimate impact of all of this probably won’t be known for some time to come and, let’s not forget, many analysts are experimenting the coronavirus to present a short-term complication for the company.
Still, it’s not the best news for the camera business in general as Sony Alpha Rumors notes that the CIPA numbers for 2019 paint a picture of the worst year of the decade for the industry in terms of camera sales.
What do you think? Is the coronavirus going to have a negative impact on Sony’s plans for its cameras – and beyond – or do you think the company is just doing its “due diligence” in issuing this warning? Let us know your thoughts in the comments below.
Also, check out some of our other photography news articles on Light Stalking by clicking this link right here.