Samsung has apparently slashed its smartphone production for this year. The company has lowered production goal by around 30 million units due to various reasons ranging from the economy to even the supply chain.

According to a TechRadar report, Korean media publication claimed that the company has reduced its orders of smartphones down to 280 million units from 310 million units. Furthermore, this slashing of orders is not limited to just one or two segments and has been done across its entire handset portfolio. In other words, phones ranging from the budget A series to the premium grade flagship Galaxy S and Z series have also been affected by this decision.

As per the report, there were a number of reasons why the South Korean tech giant made this move, which hints at the potential slowdown of the market. This includes economic issues as well as ongoing supply constraints. While the market did recover from the dip in 2020, with 5G handsets leading the rise, ongoing supply chain issues and materials shortages have stunted market growth. Lockdowns in China and the ongoing semiconductor shortages have also worsened the situation.

Apart from this, there have also been wider macroeconomic and geopolitical factors that have impacted the smartphone market due to their affects on the global economy. Due to these factors, consumers are less likely to purchase a new smartphone and delay their upgrade cycle. Although, Qualcomm believes that this would affect the entry level market more than the premium segments. On a positive note, the smartphone market is also expected to see a rise in the second half of this year.

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With the arrival of the fourth quarter of a year, the market usually sees a rise in smartphone production to cover sales during the holiday season. But now, Apple seems to be facing various supply chain issues that has caused it to slow down the production of its iPhones.

According to a Nikkei Asia’s ‘Nightmare Before Christmas‘ report, the Cupertino based giant’s primary suppliers Foxconn, Pegatron, and others have slowed down production for the first time in over a decade. Apparently, the suppliers’ workers are getting more off time, rather than overtime, which is common during the year end period. Nikkei added that “two years of lockdowns, chip shortages, and energy cuts have finally caught up with the iPhone maker.”

For those unaware, workers usually work overtime during the holiday season as the period generally records some of the highest sales for the iPhone maker. Furthermore, Apple CEO, Tim Cook, had previously said that the supply constraints back when the new iPhone lineup launched had also costed the company a whopping 6 billion US Dollars. The primary reason for this shortage was due to the ongoing global shortage of chipsets. Nikkei’s report further added that the brand had to cut the 2021 iPhone production target by more than 10 million units after Broadcom and Texas Instruments were enable to deliver the required components.

In other words, the lack of even the smallest components can cause a major delay. The ‘Nightmare before Christmas’ report even had Nikkei dive deep by interviewing over 20 industry executives to find out what caused the company’s production to take a hit. As of right now, the production goal is still short by 20 percent of Apple’s original target as its struggles with the restrictions on power in China, lockdowns in Vietnam and Malaysia, and supply constraints due to the rising demand for chips in the market.

Notably, the iPad production fared even worse with the company producing only 50 percent of its original estimations. The shortage for parts stretched till the month of November , so customers who order now, would likely be unable to get their new tablet by the time for Christmas. Delivery times for some of its most popular electronic gadgets have also reached till January 2022 now. On the other hand, sources close to the matter have stated that the company is apparently asking its suppliers to reaccelerate iPhone production for the month of November, December, and January.

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Sony is apparently facing issues with production of its PlayStation 5 gaming console. Reportedly, the company has been making lower units of the console due to shortage of components.

According to a Bloomberg report, the Japanese tech giant has internally lowered its production plans for the current financial year. Initially, the brand had projected to manufacture 16 million units of its popular PS5 between April 2021 and March 2022. But now, that figure has dropped to around 15 million units. Notably, this is also close to Sony’s previous public projection that revealed that it would sell 14.8 million units of the PS5 console in this financial year.

In other words, the drop in production is indicative of the severe shortage of components as of right now. The previous 16 million production units would have enabled the company to meet its target for 2021, while also allowing it to have additional stock for the next year. But due to the ongoing global shortage of semiconductors and other components, it seems that Sony is struggling with the production. The report added that shipments of components are irregular and are mostly late. Furthermore, the varying levels of vaccinations have made operations of production lines even more complicated.

Sony has estimated that it would sell 22.6 million units of its PS5 console before the financial year of 2022 ends, although, its manufacturing partners reportedly believe that this goal might be difficult to meet considering the ongoing supply constraints. So, it seems that getting your hands on a PlayStation 5 console has just become even more harder.

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A new report has revealed that the global smartphone market is expected to see a growth in shipments this year. The projected growth is around 12 percent, with total shipment figures reaching 1.4 bllion units.

According to a Canalys report, the growth in smartphone shipments is indicative of the strong recovery of the market from last year. During 2020, the shipments of handset fell by 7 percent due to the severe market constraints caused by the Coronavirus pandemic. But with the world recovering from the pandemic and vaccines being rolled out, the issue with supply of components will emerge as the new bottleneck for the smartphone industry.

As per Canalys Research Manager Ben Stanton, “The smartphone industry’s resilience is quite incredible.” He further added that “There is strong momentum behind 5G handsets, which accounted for 37% of global shipments in Q1, and are expected to account for 43% for the full year (610 million units). This will be driven by intense price competition between vendors, with many sacrificing other features, such as display or power, to accommodate 5G in the cheapest device possible. By the end of the year, 32% of all 5G devices shipped will have cost less than US$300. It is time for mass adoption.”

Although, the supply constraints for components wil limit the grwoth potential of smartphone shipments this year. For those unaware, the world is suffering from a major shortage of semiconductors and certain component materials at the moment. This has led to a build of backorders and “The industry is fighting for semiconductors, and every brand will feel the pinch,” Stanton added.

Canalys VP of Mobility Nicole Peng stated that “The other angle to this is pricing. As key components, such as chipsets and memory, increase in price, smartphone vendors must decide whether to absorb that cost or pass it on to consumers.” Furthermore, the report added that the pandemic even caused permanent changes in the market, with channels transforming having to adapt or die during the pandemic.

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The world is currently facing a chip crisis, with semiconductor shortages affecting industries and economies across the globe. Now, the chip shortage has neared the ‘Danger Zone’ as wait times for shipments have reached a new record high, but Taiwan promises to keep supplying chips across the globe.

According to a Bloomberg report, the chip shortage has even hampered recovery of economies post the Coronavirus pandemic and has caused a major gap between chip orders and deliveries. At the moment, the wait times have reached a whpping 17 weeks in back in April 2021. This is indicative of the fact the clients are struggling to secure a stable supply, as per a research by Susquehanna Financial Group. The 17 weeks lead time is the highest the group has ever recorded and has even marked the situation as the ‘danger zone.’

Amid this crisis, the Taiwanese government has pledged to work on providing the world with a steady chip supply despite the growth of the COVID-19 pandemic. Notably, the government also adjusted its GDP projections for this year, raising it by 4.64 percent in preparation of a global ‘scramble for semiconductors’ that will cause a surge in exports, as per an SCMP report.

Currently, the global chip shortage has affected variou indutries including automobiles, smartphone, home applicances, and other as well. Just in this year alone, automakers are expected to lose out on a reported 110 billion US Dollars in sales. So, it remains to be seen how the situation plays out as many chip makers are rushing to start the operations of new chip plants to raise chip supply in various regions.

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A Samsung Electronics senior official announced earlier today (17th March 2021) that the issues with chip supply poses a ‘slight problem’ for the company in the second quarter of this year.

According to a Reuters report, the South Korean tech giant’s co-CEO and mobile chief koh Dong-jin announced that the current imbalance within the IT sector over supply and demand and other related components was “very serious” and the second quarter “poses a slight problem.” The executive made the announcement while addressing the consumer electronics manufacturer’s annual general shareholders’ meeting.

In other words, the company is continuing its efforts to address the supply issues, which is currently affecting various industries across the globe. For those unaware, the world is suffering from a major shortage of semiconductors. At the moment, there is a global shortage of chips, which has even affected industries like the automobile sectors and even the smartphone market as well. Previously, we had also reported on Samsung’s Austin chip plant halting production that would further worsen the chip supply issue for the consumer electronics manufacturer.

The Austin plant in Texas, US, shut production due to the cold wave that has affected North America. Notably, the chip plant has a production capacity of 20,000 wafers per month. Usually, the company stocks up a month and a half of inventory for components, so that they won’t be affected by any short term suspension of production. However, the Austin site halted operations around two weeks ago.

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China has apparently stepped in to help ease the chip shortage issue. The government is aiming to ease the disruption in domestic car makers’ supply chain by publishing a handbook listing suppliers of car chips and demands from automobile manufacturers.

According to an SCMP report, China is responsible making one in every three cars in the world within car industry. In other words, the nation is also bearing the brunt of the of the global shortage, since it relies on imports for more than 80 percent of its semiconductor parts. As per official government data, vehicle production fell by 15.9 percent in the first month of this year to just 2.4 million units from a month prior.

Furthermore, the Ministry of Industry and Information Technology has also stepped in the help bridge the gap between demand supply of chips, to help reduce the disruptuion in the supply chain as well, as per CCTV (China Central Television). Recently, a special meeting was also held by the ministry to help carmakers identify sources of supply. The handbook compiled by this ministry also contains over 568 products with sources from 59 semiconductor based companies.

These are used for major vehicle chips including computing, control and communications parts, with over other 1,000 pieces of product demand information that is sought by automobile manufacturers. At the moment, the global chip makers are struggling to keep up with demand, with their capacities being stretched. This arrives as major auto and electronics makers faced a sharp turn in sales as signs of the pandemic subsiding, with more economies also slowly reopening.

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The world is currently experiencing one of the worst shortages of semiconductors. Various industries ranging from the smartphone to even the automobile market has been affected by it, And now, senior officials of popular Chinese smartphone makers, Realme and Xiaomi, have commented on the matter and have even called it a major issue.

For those unaware, there is a shortage of chip supply across the globe, which has led to an issue of supply to various different segments. The shortages have led to a global rise in prices, and also a rise in chip stock values as well. But despite the supply being short, the demand for semiconductors are still on a rise. As per a Yicai report, smartphone chips are “completely out of stock.” The Realme executive stated that Qualcomm’s chips are out of stock due to supply issues with materials, power supply and radio frequency devices as well.

Back in February 2021, Lu Weibing, President of Xiaomi, also added that the current supply issue is not a simple one, but an extreme shortage. As per a source close to the smartphone supply chain, Qualcomm’s material deliveries for its chips have been delayed by more than 30 weeks. The delivery of its CSD Bluetooth audio chips have reached up to 33 weeks. Notably, this has caused other brands like Huawei, Oppo, Vivo, and OnePlus, to raise their stocks of its smartphones related components, which has further aggravated the situation, straining chip suppliers that have their sites running at full capacity.

According to an industry analyst from Taiwan, “Currently, mobile phone processors, PMIC power management chips, and MCU microprocessor chips are all out of stock.” Similarly, Han Jinman, executive vice president of Samsung’s memory chip business, also stated that As the supply shortage of chip foundries has become a global problem, the supply of other semiconductor components may affect the demand for mobile devices.”

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With demand for PCs and smartphones booming across the globe, the tech supply chain has been strained this year. Tech giants are struggling to keep up with demand as their supply chains are working around the clock to deliver.

According to a NikkeiAsia report, companies like Intel, MediaTek, and Realtek have all been asking UMC for more support. UMC is the one that supplies most WiFi and power chips to these chipmaking giants, and is being ‘squeezed’ by rising component demands, as per people close to the matter. As per one source, “Most of the time we are begging for more chip orders and chip developers are asking for price cuts. But this time even if they were willing to pay more, we do not have much additional capacity to support them.”

For those unaware, the boom in the PC market and smartphone industry arrives amid the coronavirus pandemic. The viral outbreak disrupted supply chain across the globe as demand for workstations grew worldwide due to shifting professional or even educational norms. Currently, work from home or remote working has become increasingly more common while education has shifted to the digital realm as well, which has caused a sudden rise in demand for laptops, PCs, and other large screened devices.

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Another source added that, “The PC industry has seen unprecedented demand this year, driving record demand for Intel Wi-Fi products. We’re constantly working with our supply chain to ensure that we can support our customers.” Furthermore, both MediaTek and Realtek stated that they were working with their respective production partners to help with the component shortages issues.

The surge in orders with UMC, which is the the world’s fourth largest contract chipmaker by revenue, includes major clients like Qualcomm and Sony. However, this is still not as notable as TSMC (Taiwan Semiconductor Manufacturing Co.), where most of the chipmakers go for a majority of their production. At the moment, TSMC is fully booked toward the third quarter of 2021, as per sources familiar with the matter.

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Apple iPhone 12 series has faced a healthy demand since its launch. However, it seems that the company has yet to catch up with supply as its production lines are straining to provide consumers with its latest flagship handsets.

According to an AppleInsider report, investment bank JP Morgan tracked the delivery times, which suggested that the demand for the iPhone 12 Pro and iPhone 12 Pro Max is still ahead of the company’s supply. Reportedly, this issue is not being reflected on the lower end variants in the series, including the iPhone 12 mini and iPhone 12.

As per analyst Samik Chatterjee, JP Morgan’s iPhone availability tracker has been witnessing a build up in lead times for shipments. In other words, the time for a customer to receive their iPhone Pro or Pro Max model has been rising. At the moment, the lead times for the iPhone 12 Pro has reached an average of 27 days across several regions. This is the longest lead time ever observed by JP Morgan, which has been tracking the lead times since the start of the iPhone 12 series’ launch.

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On the other hand, the lead times for the iPhone 12 mini and iPhone 12 decreased over the previous week. This is suggestive of a more humble demand from the consumers. As of the first week of December, both the lower end iPhones had a lead time of only 3 days, while the iPhone 12 Pro Max takes 23 days to reach customers on average.

In the US, the Apple iPhone 12 Pro and iPhone 12 Pro Max lead times have surged even further and reached 33 days and 25 days respectively. This is notable considering that the region accounts for about 35 percent of the global iPhone shipments. Although, in store pickup for all models only had a lead time of just a single day. In this regard, China, UK, and other European regions saw slightly better lead times in comparison.

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The Apple iPhone 12 series was recently launched and has been well received in the market. The 2020 iPhone from the company has seen great global sales which has even surpassed expectations. Although, despite a healthy demand, Apple is struggling with supply constraints, which was caused shortages of certain models due to the lack of critical components.

According to a UDN report, the iPhone 12 series is still exceeding expectations in terms of sales. However, certain models like the iPhone 12 Pro are still in short supply. The primary reason for the lack of inventory is the shortage in some key ICs for the device. These components are crucial for the handset, which cannot be assembled due to supply constraints.

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Unfortunately, it seems this issue will stay for a while as the report also believes that the issue will continue till next year. As per the report, the foundries are tightly packed with orders at the moment, and their capacity to make advances process wafers and the shortage of packaging and testing will continue forward till the second quarter of next year. The source added that the Cupertino based giant cannot keep up with the supply gap for the iPhone 12 Pro, which is larger than the iPhone 12 and iPhone 12 Pro Max.

The key ICs Apple is lacking for the iPhone 12 series will also an impact on the company’s supply chain and its overall annual smartphone shipments for the year of 2020. Furthermore, with the demand for advanced process chips growing even more in recent months, Apple will find it difficult to stock up its inventory as the foundries are running at maximum capacities.

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Due to the Coronavirus pandemic, work from home or remote working has increasingly become the norm. Similarly, demand for gaming has also grown significantly, which is what Foxconn Chairman, Young Liu believes is causing the IC (integrated circuit) shortages at the moment.

As per the senior official, the shortages for various components, especially IC fabricated at 8 inch fabs will last till the terminal market demand does not slow down for notebooks, gaming PCs, and other devices that are a part of the new work from home market. According to a DigiTimes report, the shortage of supply for IC components is also due to the partly insufficient wafer capacity for chip vendors.

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In other words, the shortages will effectively last till the time the consumer demand eases. Shortages for such components have been an issue ever since the onset of the pandemic, which first broke out in China back in 2019 end. These shortages have affected anywhere from LCD driver ICs, power management ICs, and other peripheral ICs as well. Furthermore, a recent surge in infected cases of the virus in regions like the US and Europe has also further fueled the demand for remote working months after the initial lockdowns had been implemented.

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The anticipation for the Sony PlayStation 5 is at all time high with its launch arriving in just 2 days. However, prior to its release, pre orders for the next generation of video game console have already surfaced online at three times its official retail price by scalpers.

For those unaware, the PS5 starts sale on 12th November 2020 in multiple markets, including North America, Japan, and more. But unfortunately for the Chinese market, the launch might be delayed by a bit, owing to the tightly regulated gaming market in the country. Now, it seems that a few individuals are taking advantage of this situation and have started taking pre orders on major e-retailing website JD.com, as per a SouthChinaMorningPost report.

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The Sony PlayStation 5 carries an official price tag of 500 US Dollars. However, these online pre orders have listed the price three times higher, as high as 12,888 Yuan (roughly 1,950 US Dollars). This is quite a steep mark up, which has already surface even prior to the console’s global launch. The reason for the premium charge is not limited to just a delayed sales, rather, it is more related to the supply of the PS5.

Due to the Coronavirus pandemic, there has been a supply shortage in various industries and companies like AMD (Ryzen 5000 series CPUs), Nvidia (RTX 3000 series GPUs), and even Sony are suffering the brunt of it right when their next gen hardware is being launched. Meaning, every new launch is being hoarded by scalpers that resell it at a premium. Piers Harding-Rolls, research director of games at Ampere Analysis stated that “We expect demand for the new consoles to outstrip supply up until at least the end of March 2021.”

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The new AMD Ryzen 5000 series of desktop processors had recently launched to a market that was eagerly awaiting its arrival. However, despite the company stating it shipping out “tons of units,” the new CPUs have already been out of stock across the globe.

The shortage of new chips arrives amid the stocking issues being faced by NVIDIA, which has also left many people frustrated. For those unaware, Team Green’s new RTX 3000 series GPUs have been struggling to keep up to supply the large demand for the new graphics cards. Notably, AMD had stated that it would be facing the same supply constraints as NVIDIA did for its new Radeon 6000 series of GPUs, but it seems that its CPUs are already being sold out everywhere.

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According to a TechRadar report, it is being speculated that Team Red’s recent Ryzen CPUs might be a part of a “paper launch” strategy. Meaning that the new release arrived just as a PR stunt with very little inventory to begin with. Although, Frank Azor, AMD’s chief architect of gaming solutions and marketing have assured that this would not be the case and insists that a large demand is the cause of the problem.

Unfortunately, this does not seem very convincing as the infamously low stock from NVIDIA also prompted the company to blame the demand rather than its own supply issues. In other words, the statement from the official might frustrate its patient buyers that are looking forward to a CPU upgrade even further. So stay tuned for more as we will be providing updates when more information is available.

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Jensen Huang, Nvidia CEO, has just revealed some very bad news. If you were one of the people looking forward to upgrading to the company’s RTX 3000 series of graphics cards, you might have to wait till 2021.

According to a TheVerge report, the senior executive recently responded to questions regarding the GPU shortages and he stated that ” believe that demand will outstrip all of our supply through the year.” For those unaware, the company’s newly launched RTX 3080 and 3090 have had rough launches, with both cards selling out almost immediately after launch. Although, Huang believes the issue isn’t with the supply but demand of the GPU itself.

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He further added that “Even if we knew about all the demand, I don’t think it’s possible to have ramped that fast. We’re ramping really really hard. Yields are great, the product’s shipping fantastically, it’s just getting sold out instantly.” The company has already apologized to the initial launch of the RTX 3080, which was one of the most chaotic released in Nvidia’s history. Furthermore, another more affordable card is also launching in the series, the RX 3070, which is the more affordable and will likely have the highest demand as well.

Since it was claimed that the card could rival previous gen’s top end $1,100 at a price of just $499, one would expect a huge demand. However, Nvidia has since apparently learned from its mistake and has shifted the launch date back to October 29, which is just a day after AMD‘s Big Navi reveal on 28th. So, we can expect the season to be quite a competitive one, with many notable launches.

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With 5G being the new trend in the smartphone industry, more and more OEMs are adopting the newer and faster bandwidth for their handset offerings from different segments. Despite this, 4G LTE enabled smartphones are still more popular and see higher sales and, due to supply constraints, many 4G chips from MediaTek to be out of stock until the end of 2020.

According to a UDN report, MediaTek’s supply for many of its 4G mobile chip has run dry and the restock will arrive only by 2021. The lack of supply is also indicative of the chipmaker’s focus on 5G chips, which has become popular in the current market in 2020. At the moment, the company has yet to comment on this matter but it is already known that its Dimensity chips have seen a rise in orders in the past quarter.

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TrendForce, a known research based firm, also pointed out that the inclusion of Apple into the 5G market will boost the reach of 5G smartphones in multiple markets. Previously, we had even reported on another analysis from TrendForce that projected that Apple and Huawei will be the market leaders of the 5G market in 2020, especially in the second half of 2020. Ever since Huawei lost TSMC for chip supply, 5G Dimensity chips from MediaTek have also seen increased orders.

Although, while 5G chips have become increasingly more popular, 4G handsets are still preferred by consumers and have dominance in the market. One of the reasons for the shortage stems from the company’s supply chain, coupled with a lack of power management ICs. Thus, the supply for low end MediaTek chips are in short supply till the end of this year.

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A fresh report has revealed that Huawei Technologies is delaying the production of its flagship smartphones for 2020. The move arrives after the Chinese tech giant was hit with recent US sanctions, which caused it to lose its mobile chip supply from contract chipmaker, TSMC.

According to sources, Huawei has told its suppliers to delay production of the upcoming flagship models as the company weighs potential supply chain disruption following the new restrictions from the US. Reportedly, Huawei has asked for production halts for some of the components for the upcoming Huawei Mate 40 series. Furthermore, the company has also trimmed orders for certain parts in the next quarter.

At the moment, the Chinese smartphone vendor is assessing the impacts on its smartphone business after the new regulations were put in place. Following its annual schedule, Huawei usually launches the latest Mate series of premium grade handsets in the second half of the year. This period is generally packed with notable launches, such as Apple’s latest iPhone series and more.

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For those unaware, Huawei smartphones mostly feature the company’s proprietary Kirin processor from its subsidiary chip designer, HiSilicon. However, while Huawei designs its own chips, these are produced by TSMC. Thus, with the loss of its primary chip supplier, the company is reassessing the situation, looking into alternatives, and even investing in local semiconductor firms, with plans in the longer run.

According to a source, “We now see the postponement of the mass production of Mate series will be for at least one to two months.” In other words, Huawei is still finalizing and resolving issues within its supply chain, and also reviewings its stock of existing chips. An executive of a Huawei supplier stated that, “One of the reasons to pause is that Huawei is reviewing the inventory level of its HiSilicon mobile chips and is busy verifying other mobile platforms by MediaTek and Qualcomm. But verifying other mobile platforms could lead to redesigns of the mechanical parts of the smartphones, which will take time.”

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(Via)

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The highly anticipated Samsung Galaxy Fold 2 has been rumored to be announced at the August 5th event, during which, the company will be launching its flagship Galaxy Note 20 series. However, despite its announcement, the Galaxy Fold 2 may not be available shortly after its official announcement.

According to a new report, the second iteration of Samsung’s first foldable smartphone has yet to have its software development process reach a final version of its bootloader. At the moment, the Galaxy Note 20 has reached this point and will be available shortly after the launch conference. Furthermore, another source revealed that the Galaxy Fold 2 will only start production in August and not July of 2020.

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The reason for the display is reportedly the supply constraints regarding the Ultra thin Glass or UTG that Samsung will be adopting on top of the Galaxy Fold 2’s foldable display. The UTG covering was first introduced on the Galaxy Z Flip and a new report has stated that the issues with supply will last until next year. Thus, the Galaxy Fold 2 will be hard to manufacture for the time being.

Although, the flagship foldable smartphone is also expected to be more affordable than the original Galaxy Fold, and is rumored to feature a larger display on the inside and outside as well. Under the hood, a Qualcomm Snapdragon 865 5G SoC will likely be found, with a 4,500mAh split battery will be housed in the two halves of the device. Samsung might also improve in other aspects as well, and include water and dust resistance. So stay tuned as we will be providing more updates on the launch.

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(Via:1,2)

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Recently, China was hit with a major epidemic after a new strain of Coronavirus spread in the country. It originated from the Wuhan district and is known to cause pneumonia. The infection is highly contagious and has been a cause for global alarm. This has now apparently led to smartphone brands like Xiaomi, Apple, and Realme to suffer from a shortage in supply.

Previously, the Chinese government issued a closure of many factories in order to prevent further infections. The move was undertaken in order to curb the infection in areas with a high number of workers. But this has led to a shortage of supply units for smartphones for various brands, especially the ones that have recently launched or have an important launch coming up.

Xiaomi, Realme, and TCL are a few of the local manufacturers that have taken a hit but Apple is reported to be one of the worst affected. The Cupertino based giant was observing higher than normal sales of its latest iPhone 11 series, but the viral outbreak has seemingly crippled its supply chain. This extends to the company’s Apple Watch series as well.

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Furthermore, it has been reported that Xiaomi and TCL have been facing a significant shortage in supply for their respective TV models. And since Xiaomi is not limited to any one electronic product, it is also facing issues in its air conditioning department as well. Similarly, Realme is also currently facing the troubles with supply after its latest handset models like the Realme C3 and 5i’s production being affected.

As of right now, most of the aforementioned brands have restarted production again in China. Although the capacity at which they are functioning is still around 35-50%. Additionally, some of the components during this period have also gone up in price, causing OEMs to either absorb or hike prices of their products as well. The problem is more pervasive than previously thought out to be as both online and offline retailers are stockpiling products fearing further disruption in the supply chain.

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Xiaomi makes some of the best value for money smartphones that we have seen in the market lately, but the company has one major drawback, inadequate supply of its products. Many of the new smartphone launches from the company are hard to get even in China, which means most of the desired consumers are left disappointed. But looks like the company is taking appropriate measures to change this.

In an internal letter sent by Xiaomi’s CEO Lei Jun, he has stated that from now onwards, he will personally be responsible for the phone supply chain of Xiaomi. The existing supply chain head, Zhou Guangping will now take care of the technology research department of the company. Now that the CEO himself is going to take care of the supply of Xiaomi smartphones, it looks like this issue has been given due attention. And this change should positively affect the company. If the supply improves, the sales will improve and everyone is happy end of the day. It was an urgent matter and we hope it will solved real soon.

So, what do you think? If Lei Jun, the CEO himself is in charge of the supply of the company’s smartphones, will we be seeing a significant improvement in the overall availability of Xiaomi products?

In case you are wondering, yesterday, we reported that Xiaomi is manufacturing around 700,000 units of the Mi 5 per month, lower than Huawei Mate 8’s 900,000 and OPPO R9’s 2 million per month figure.

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