Delhi: Market trackers predict a component shortage for Indian smartphone makers by the middle of next month if China’s COVID case rise continues and most factories are down for the Chinese New Year. The brands have learned from prior interruptions and stored up on components to meet India’s muted demand, so that may not worry them.
TechArc’s chief analyst Faisal Kawoosa said, “If the problem lasts for three weeks, smartphone companies that rely heavily on Chinese factories could have trouble getting parts.”
Disruptions may affect early future releases. To meet local demand, brands have stockpiled components for older models. Due to a sluggish fourth quarter, they will have greater inventory next year.
Mainland According to tweets by Chinese epidemiologist and health economist Eric Feigl-Ding, hospitals are swamped by a new rise in COVID-19 cases after restrictions were eased. He expects 60% of the country to be infected in 90 days. He said the US is monitoring China’s COVID situation for potential effects on its companies and supply lines.
“Brands won’t scurry for supply because the market is developing fast.” We’ll launch. IDC India’s assistant vice president, Navkendar Singh, said, “January and February don’t see significant volumes, at least in the mass category, which isn’t growing, so we don’t expect any disruptions in the short term.”
After a dismal third quarter, market trackers have lowered their year shipment projections. IDC India forecasts 150 million shipments, down from 160 million, while rival research expects 163 million, missing its 175 million predictions. CMR India expects 165 million units, down 5%.