According to the latest news, as per reports, Chinese smartphone manufacturers have lowered their handset shipment goals for this year. The list of manufacturers includes major brands like Xiaomi, Oppo, Realme, and Honor. It is worth mention that last month, they already lowered their targets but they reduced it further this time.
DigiTimes reported referring to industry sources close to the matter as the source that multiple factors have led these smartphone makers from China to lower their shipment goals. Some of the factors are supply chain issues of intermediate goods and global chip shortage.
The global chip shortage has already impacted industries like automobiles, PCs, home appliances, and smartphones. The US government has decided to invest in chips to counter this shortage. Apart from these factors, the resurgence of Coronavirus in key regions like India is also the reason behind cutting targets.
It seems the smartphone market is going to take a hit again. Kiranjeet Kaur, a senior research manager at IDC said “People are not venturing outside their home unless they absolutely need to. Online retailers are only providing essentials, and smartphones are not considered an essential.”
For these Chinese tech giants, India has been a crucial market so declining sales in this region will impact the overall sales of these companies. As of now, Xiaomi is the leading smartphone brand in the region. In the year 2020, it has shipped over 41 million units in India.
Realme said in a statement, “Our current business development is affected to a certain extent, but as the situation hopefully improves, we are confident that we will be able to recover quickly.”