Chinese smartphone manufacturers have apparently lowered their handset shipment goals for 2021 again. This reportedly includes major brands like Xiaomi, Oppo, Realme, and Honor, which have already lowered their targets earlier this month.
According to a DigiTimes report, industry sources close to the matter have revealed that these brands further lowered their smartphone shipment goals for the year 2021. There are multiple factors that have led smartphone makers from China to lower their shipment goals, which include supply issues with materials and even the global chip shortage that has impacted various industries across the globe. For those unaware, the semiconductor shortage has already impacted industries like automobiles, PCs, home appliances, and even smartphones.
Another notable factor includes the resurgence of Coronavirus in key regions like India, which is suffering from the impacts of the second wave of COVID-19. The smartphone market in the country was recovering but it seems to on the decline again. Kiranjeet Kaur, a senior research manager at IDC added that “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.”
India has been a crucial market for smartphone brands like Xiaomi, Oppo, Realme, and others. Thus, declining sales in the region will impact the overall sales of these companies. Notably, Xiaomi was the leading smartphone brand in the region, annually shipping over 41 million units in 2020. In a statement, Realme said that “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.”
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