As the results of the EU referendum came in, consumer electronic giants and other tech companies hit the panic button. Reports from the east indicate that companies like Samsung, LG and Acer are already mulling the adverse effects of Brexit.
The Korean Herald reports that Samsung is considering shifting its European headquarters from London to another location in Europe. Samsung's European production base for home appliances is already located in Poland, and its television products are assembled in Slovakia and Hungary.
Prior to this in 2015 too there was much buzz about the company moving its European HQ to Warsaw due to falling sales in the European region. It seems with the Brexit vote, the company will now have more than one reason to shift its HQ out of London. No official statement has, however, been issued by the company yet.
Another Korean company, LG Electronics, is also said to be worried about the repercussions of Brexit. Industry experts prior to the vote had already raised concerns that foreign companies' products made in Europe could be subject to tariffs when entering the UK market. Post Brexit if the tariffs and taxes are too much for these companies, the UK may be out of their supply map altogether or the prices may severely shoot up. This is primarily because local companies do not have production facilities in the UK.
Taiwanese computing firm Acer has also indicated that the outcome of the UK vote has created immediate impact on exchange rates. Acer CEO Jason Chen has said the UK's departure from the EU will weaken demand in the European market due to lower consumer confidence and exchange rate fluctuations. Almost 30% of Acer's revenues come from Europe, and the company thinks the operation in the region will be greatly affected.
London's technology sector as a whole, according to a survey of members of Tech London Advocates, had overwhelmingly opposed Brexit with 87% saying they feared they would be unable to attract European customers and overseas talent.