Smartphones Might Get Costlier Due To Components Supply Issues: Report

Despite the factory shutdowns in China due to the coronavirus outbreak, smartphone companies are launching products in India. In fact, Xiaomi has recently launched the Redmi 8A Dual in the country. But now, the company has increased the price of Redmi Note 8 in India by Rs. 500.

After the revision, the 4GB RAM and 64GB of internal storage model are priced at Rs. 10,499 as against Rs. 9,999. The company has increased its prices due to the shortage of components. Now, it has been reported that all smartphone makers are feeling the heat, and there are chances that the price of the components will increase. Besides, retailers said that they are running out of stock of the iPhone 11 and the iPhone 11 Pro.

"The extended shutdown in China is likely to have an impact on our supply chain and, there is a risk of impact on the overall quantum of component supplies," a spokesperson for Xiaomi was quoted by Economic Times.

"While we are working to explore alternative supply channels for components and raw materials, the immediate impact is that the short supply might cause some negative pressure on the prices of these components," the spokesperson added.

It is worth mentioning that the ICEA chairman also said that there is a shortage of stocks, and if the situation continues, then there will be a major issue. Further, the report reveals that smartphone companies are getting a camera and battery from Vietnam. But display and connectors come from China. Apart from that, the report pointed out that the feature industry will be affected as companies are importing PCBs from China.

"For February, sourcing of components and materials take place in December and January, while for March, sourcing was supposed to take place in mid-February, which is not happening. So, after the first two weeks of March, there will be a shortage of devices," an official was quoted by the newspaper.

Sources