coronavirus
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Do trade shows still matter in the age of online business?
The death of Mobile World Congress 2020 started as a trickle.
First, it was an understandably nervous ZTE. As a Chinese company, it was undoubtedly going to receive extra scrutiny — never mind that ZTE’s Shenzhen headquarters are a two-hour flight from Wuhan. Soon enough, South Korea’s LG backed out, followed by Nvidia and Ericsson.
By the weekend, as deaths from the coronavirus rose to more than 800 (surpassing SARS in the process), event organizers GSMA put strict guidelines in place for approximately 100,000 expected attendees:
- No travelers from the Hubei province would be permitted access.
- Attendees were required to prove that they were outside China for 14 days prior to the event (passport stamp, health certificate).
- Temperature screening was to be implemented.
- Attendees needed to self-certify they had not been in contact with anyone infected.
Ultimately, it was too late. Soon enough, Amazon was out and the list ballooned to dozens of companies, including AT&T, Intel, Nokia, Sony and Vodafone. Each offered a similar boilerplate response, noting the cost-benefit analysis for sending staff to a large international show amid concerns of a global epidemic.
PCMag’s Sascha Segan wrote a piece worth reading on “snowballing hysteria” around a trade show killed in a country that only had two reported cases at the time of cancellation. It’s a valid point, though speaking purely pragmatically, I can understand why companies felt obligated to back out.
If you want to give them the benefit of the doubt, there are some valid concerns about sending employees into the petri dish of colds and flus that is basically every trade show, coupled with the novelty of a new and still not completely understood virus. It can be difficult to balance concerns for employee safety with the need to resist panicking over media reports that tend to overemphasize threats.
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Daily Crunch: Apple blames coronavirus for revenue miss
Apple says the coronavirus outbreak will hurt its manufacturing and sales, Jeff Bezos makes a big commitment to fighting climate change and SpaceX launches more Starlink satellites. Here’s your Daily Crunch for February 18, 2020.
1. Apple will miss revenue forecast as coronavirus impacts its manufacturing and sales
In a letter to investors, Apple said that it “do[es] not expect to meet the revenue guidance we provided for the March quarter” due to impacts stemming from the coronavirus that has shuttered large parts of China, and is reverberating through the global economy.
As China’s return to work has proved halting, and the coronavirus itself more intractable than some anticipated, the company’s change in guidance is almost unsurprising — but that hasn’t stopped Apple’s stock price from falling this morning.
2. Jeff Bezos announced a $10 billion fund to fight climate change
Jeff Bezos announced on Instagram that he’s creating a $10 billion fund to combat climate change. He said the Bezos Earth Fund will finance “scientists, activists, NGOs — any effort that offers a real possibility to help preserve and protect the natural world.”
3. SpaceX successfully launches 60 more Starlink satellites but misses booster landing
SpaceX has launched a batch of 60 Starlink satellites into orbit, marking its fifth overall launch of a group of 60 of the small spacecraft, and its third this year alone. This launch brings the total Starlink constellation to 300 satellites in orbit, extending SpaceX’s lead as the largest commercial satellite operator in the world.
4. Redbox enters the free, ad-supported streaming market
Oddly, Redbox Free Live TV isn’t live at all — at least, not in the way that you’d get with a TV streaming service like YouTube TV or Hulu with Live TV. Instead, it offers a curated set of ad-supported movies and TV shows, similar to The Roku Channel, IMDb TV or TiVo Plus.
5. How TikTok decides who to make famous
The co-founders of video startup Trash take a deep dive into the TikTok ecosystem, particularly its extensive content moderation. (Extra Crunch membership required.)
6. Atomico raises new $820M fund to back ‘mission-driven’ European founders at Series A and beyond
The London-headquartered VC firm’s previous fund closed at $765 million, so this is an increase over three years ago. However, the remit remains largely the same. Atomico says it plans to double down on its strategy of backing “mission-driven” European founders at Series A, but with the ability to invest in what it calls “breakout” companies at the Series B and C stage.
7. Black haircare startup Naza Beauty just raised $1 million from Alexis Ohanian’s Initialized Capital
At its most basic level, it’s like Drybar — with a menu of styles — but for women of color. On the tech side, Naza’s software functions as a booking and payments platform, which also learns the styles of each customer and then makes product recommendations.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.
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GSMA cancels Mobile World Congress due to coronavirus concerns
The GSMA, the organization behind MWC, the world’s largest mobile trade show, has announced that it is officially canceling the show. MWC usually attracts more than 100,000 attendees from 200 countries to Barcelona. This year’s show was supposed to take place on February 24-27.
Several publications received a statement about the cancellation. “The GSMA has cancelled MWC Barcelona 2020 because the global concern regarding the coronavirus outbreak, travel concern and other circumstances, make it impossible for the GSMA to hold the event,” GSMA CEO John Hoffman told Bloomberg and the Financial Times. El Diario, El País and La Vanguardia also report that the show has been canceled.
The GSMA has now published a statement confirming its decision to cancel — writing:
Since the first edition of Mobile World Congress in Barcelona in 2006, the GSMA has convened the industry, governments, ministers, policymakers, operators and industry leaders across the broader ecosystem.
With due regard to the safe and healthy environment in Barcelona and the host country today, the GSMA has cancelled MWC Barcelona 2020 because the global concern regarding the coronavirus outbreak, travel concern and other circumstances, make it impossible for the GSMA to hold the event.
The Host City Parties respect and understand this decision.
The GSMA and the Host City Parties will continue to be working in unison and supporting each other for MWC Barcelona 2021 and future editions.
Our sympathies at this time are with those affected in China, and all around the world.
Further updates from the GSMA, are on our website and can be found on www.mwcbarcelona.com.
Over the past few days, dozens of big names announced they would skip this year’s show. LG first announced that it wouldn’t attend the trade show, citing safety concerns related to the coronavirus outbreak. Nvidia and Ericsson followed suit.
On Sunday, the GSMA sent a long coronavirus-related email to registered attendees. The association wanted to reassure attendees by demonstrating that it would implement tough restrictions.
Here’s what GSMA CEO John Hoffman wrote:
- All travellers from the Hubai province will not be permitted access to the event
- MWC Barcelona, Four Years From Now (4YFN), xside and YoMo
- All travellers who have been in China will need to demonstrate proof they have been outside of China 14 days prior to the event (passport stamp, health certificate)
- Temperature screening will be implemented
- Attendees will need to self-certify they have not been in contact with anyone infected.
But that email made things even worse.
Dozens of companies pulled out of the trade show. In other words, some of the top consumer electronics and telecom companies got scared. And those who thought that GSMA had things under control started to cancel their attendance as well — it wasn’t worth going to Barcelona if many important partners had already canceled.
Some of the companies that announced they wouldn’t be attending include Amazon, Deutsche Telekom, Ericsson, Facebook, HMD, Intel, LG, Nokia, NTT Docomo, Sony and Sprint.
GSMA’s lawyers wanted to make sure that the association wouldn’t be held accountable if there was a single case of coronavirus at the show. But they started another virus — companies pulling out one by one.
As companies usually spend millions of dollars to secure exhibit space and send large teams, canceling MWC altogether is going to be an unexpected financial blow for the GSMA.
According to a report from El País, the GSMA originally planned to meet on Friday and consider the next steps. The association held an emergency meeting earlier today in order to make a decision more quickly.
MWC originally started as a trade show for carriers. Big telecom companies would meet up with hardware vendors and discuss the evolution of telecommunications networks. More recently, phone manufacturers started attending the show to talk with telecom companies and unveil their latest products. Big tech companies, such as Facebook and Amazon, have also had a formal presence in recent years as they have developed important ties with the mobile industry.
According to the World Health Organization, there are more than 43,000 cases of coronavirus around the world. More than 1,000 people have died.
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A list of MWC coronavirus cancellations so far: Facebook, AT&T, Sprint, Intel now also staying away
Yet more big names are being added to the list of companies that are staying away from the world’s biggest mobile tradeshow, Mobile World Congress (MWC), with Facebook and Intel among the latest to cancel their attendance. Due to take place in Barcelona just under two weeks’ time, on February 24-27, the event has been hampered by the ongoing situation with the novel coronavirus outbreak.
“Out of an abundance of caution, Facebook employees won’t be attending this year’s Mobile World Congress due to the evolving public health risks related to coronavirus,” said a spokesperson for Facebook, in a message worded not unlike a number of others that have been put out by others choosing not to attend. “We will continue to collaborate with the GSMA and our partners and thank them for their efforts.”
Spanish publication El Pais is also reporting that the GSMA, the body that organizes the event, is due to meet on Friday and consider its next steps, which could include suspending the event. It also notes that major carriers Vodafone and Deutsche Telekom are also considering options, although nothing has been confirmed yet. Orange has told us it still intends to participate.
We have reached out to the GSMA and it has declined to comment on the El Pais report. “We don’t comment on internal meetings,” the spokesperson said. (The GSMA would be meeting regularly regardless in the lead-up to the event.)
The annual international telco industry event typically attracts more than 100,000 delegates from around 200 countries across the conference’s four days — with every major telco and tech giant exhibiting (with the exception of Apple which prefers its own events).
But with international concern now focused on the novel coronavirus outbreak — which was declared a global emergency by the World Health Organization late last month and as of today has infected over 40,000 people with more than 1,000 deaths — a growing number of companies have announced they are pulling out of attending.
Others, such as Telenor, TCL and ZTE, have cancelled press events or said they will scale back their presence though are still planning to attend. Today Chinese phone maker Xiaomi also confirmed it will attend — tweeting a statement detailing the precautions it’s taking.
Having carriers pulling out of the event is a huge deal, since they are the key “buyers” at the trade show and at the heart of the organization, the GSMA, that is behind it. And while big tech companies like Facebook are a newer, but now very regular, presence the event — which underscores how MWC has changed over the years, and how the mobile industry is trying to evolve with the times, where “tech” and “telco” are no longer distinct entities — they are nonetheless leaving a large hole in the makeup of the show by not being there.
The GSMA has announced a series of restrictions intended to reduce the risk of the coronavirus infections at the conference, including a ban on travellers coming from the province in China where the virus was first identified. It has also said it will implement temperature screening of attendees; require conference-goers self-certify they have not come into contact with an infected person; and is suggesting delegates adopt a ‘no hand shake’ policy in a bid to limit contact.
There is a lot riding on MWC going ahead. The El Pais report notes that MWC generates some 14,000 temporary jobs and generates €492 million (nearly $540 million) for the city. Per the GSMA site, more than 2,400 companies are exhibiting at MWC this year. Yesterday, a spokesperson told TechCrunch that MWC had 2,800 companies signed up to exhibit, but it’s not sharing how many are still going to be there.
See below for a list of companies that have cancelled their attendance at the conference — we’ll update with any additions as we get them.
Organizations that have cancelled their attendance at MWC 2020
ARCEP, France’s FCC (confirmed via email)
AT&T (confirmed via email)
F5 Networks (confirmed via email)
Facebook (confirmed via email)
Gigaset (confirmed via email)
KMW Communications (confirmed via email)
Radwin (confirmed via email)
Rakuten (confirmed via email)
Sprint (confirmed via email)
Viber (confirmed via email)
This article was updated with a correction to remove ‘Rakuten’ from the list of cancellations after an earlier spokesperson provided us with incorrect information. And in a further update, the CEO of Viber, owned by Rakuten, also said the messaging app would be attending after all:
“As of today Viber will have a presence at MWC, including me,” said Djamel Agaoua. “Like all companies, we are evaluating the risk to our employees and if our position changes we will keep you updated. Sorry about the confusion.”
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Sony to pull out of MWC over coronavirus outbreak
Japanese electronics firm Sony is the latest phone maker to announce it’s withdrawing from the Mobile World Congress (MWC) tradeshow, citing concerns about the coronavirus outbreak.
“As we place the utmost importance on the safety and wellbeing of our customers, partners, media and employees, we have taken the difficult decision to withdraw from exhibiting and participating at MWC 2020 in Barcelona, Spain,” Sony wrote in a press release.
MWC is due to take place in Barcelona between February 24-27.
Sony said it will now run a press conference planned for the event via its official Xperia YouTube channel at the scheduled time of 8:30 AM (CET) on February 24.
“Sony would like to thank everyone for their understanding and ongoing support during these challenging times,” it added.
In recent days, a number of companies have announced they’re pulling out or scaling back their presence at the conference as a result of concerns about the spread of the virus, including Amazon, Ericsson, LG, NVIDIA and ZTE.
The World Health Organization dubbed the emergence and spread of the novel coronavirus a global emergency late last month.
At the time of writing, the majority of infections and deaths from the virus remain in China, where the virus was first identified in the town of Wuhan in the Hubei province.
Several Chinese tech companies, including ZTE and Xiaomi, have said they will make changes to their participation in MWC related to coronavirus concerns, such as placing limits on staff travelling from China or requiring they self isolate in the period before attending.
Yesterday the organizers of MWC, the GSMA, also announced stringent rules to try to safeguard attendees, including a ban on travellers from Hubei and a requirement that all travellers who have been in China must be able to prove they have been outside the country 14 days prior to the event.
Attendees will also be required to self-certify they have not been in contact with anyone affected, the GSMA said. Temperature screening will also be implemented at the event.
Last year the annual mobile tech conference drew almost 110,000 attendees from 198 countries.
“While further planning is underway, we will continue to monitor the situation and will adapt our plans according to developments and advice we receive. We are contending with a constantly evolving situation, that will require fast adaptability,” the GSMA also said.
Attendance at MWC has regularly broken 100,000 in recent years, but 2020’s conference seems likely to mark a break with business as usual as companies face pressure to rethink their travel priorities.
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As top exhibitors pull out of MWC, organizers implement stringent safeguards
A couple of weeks out, Mobile World Congress organizer, the GSMA, has issued some fairly sweeping safeguards over growing concerns around the coronavirus. After a number of high profile back outs, including ZTE, LG, NVIDIA and Ericsson, the company issued a new list, including a ban of visitors originating from the Hubei province, whose capital Wuhan is believed to be the origin of the epidemic.
Per GSMA CEO John Hoffman,
-
All travelers from the Hubei province will not be permitted access to the event
-
All travelers who have been in China will need to demonstrate proof they have been outside of China 14 days prior to the event (passport stamp, health certificate)
-
Temperature screening will be implemented
-
Attendees will need to self-certify they have not been in contact with anyone infected.
More than 800 people have died from the virus, surpassing the 774 people who were killed by SARS circa 2002-2003. Hoffman adds that the organizer will be increasing a disinfectant program around the site and promoting a “no handshake policy.” As the organization notes, some 5,000-6,000 people from China attend the show each year, accounting for around 5-6 percent of visitors.
The GSMA is clearly interested in addressing concerns over the virus, while limiting further attendee or exhibitor erosion. The release quotes Catalan health minister Alba Vergés, who notes, “The Catalan health system is prepared to detect and treat coronavirus, to give the most appropriate response, and this must be clear to those attending MWC Barcelona.”
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[Updated] LG withdraws from MWC due to coronavirus-related concerns
This story has been edited to reflect a new statement by ZTE that it will attend MWC as planned.
LG Electronics has cancelled its plan to participate in MWC later this month in Barcelona, Spain, because of coronavirus-related concerns, while Xiaomi has cancelled its trip for Chinese media but will still attend the event.
In a statement on its site, LG said it will skip MWC, the world’s largest mobile trade show, and launch this year’s releases at separate events “in the near future” instead.
“With the safety of its employees, partners and customers foremost in mind, LG has decided to withdraw from exhibiting and participating in MWC 2020 later this month in Barcelona, Spain,” the statement from LG, headquartered in Seoul, South Korea, read. “This 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.”
A Xiaomi spokesperson told TechCrunch the company is “paying close attention to the situation. Xiaomi is still attending this year’s event and will make necessary adjustment accordingly.”
Earlier The Verge reported that ZTE had cancelled its press conference because of travel and visa delays, according to a company spokesperson, but also because “[we] tend to be an overly courteous company, and simply don’t want to make people uncomfortable.” But the company later tweeted that it plans to attend MWC as planned.
#ZTE will participate in #MWC20 Barcelona as planned, showcasing comprehensive #5G end-to-end solutions and a wide variety of 5G devices. ZTE’s booth is in 3F30, Hall 3, FIRA GRAN VIA. pic.twitter.com/vB9S4IpyZP
— ZTE Corporation (@ZTEPress) February 5, 2020
The coronavirus outbreak has disrupted travel and supply chains around the world. While the vast majority of cases reported have been inside China, the outbreak has also led to a wave of open racism and xenophobia targeted at people of Asian descent around the world.
In a statement posted on its site today, MWC organizers GSMA said it “continues to monitor and assess the potential impact of the coronavirus on its MWC20 events held annually in Barcelona, Shanghai and Los Angeles and as well as the Mobile 360 Series of regional conferences. The GSMA confirms that there is minimal impact on the event thus far.”
All Barcelona events taking place February 24 to 27 will go on as scheduled. GSMA previously announced the measures it is taking to prevent the spread of the virus, including increased cleaning and disinfection of high-traffic areas, including catering areas, handrails, bathrooms, entrances and exits and touchscreens and more onsite medical support. It also said it will have a “mic change protocol” for speakers, and advise all attendees to “adopt a ‘no-handshake’ policy.”
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