Smartphone makers unable to meet growing demand - here's why

(Image credit: Future)

While the smartphone industry was attempting to regain the ground lost due to the pandemic outbreak, issues like production delays and supply chain disruptions have resulted in a 30-40% dip in the smartphone sales despite strong demand.

Both IDC and Counterpoint Research find that the impact of custom clearance delays that started in June, due to the Ladakh border issues, is still hampering the supplies in July, reports ET. 

Both the agencies have reported that devices from almost all the companies are out of stock on both online and offline stores.

Missed opportunity

Ever since the Indo-China border tensions hit a peak, technology companies are facing the heat. Indian Government’s decision to manually check all the incoming Chinese cargo has caused a delay in the supply of phones and components by 10 days.

A device takes over three to four weeks to go through the cycle that starts with the shipment from China and ends up with a distributor while passing through the assembly line, “the delay at customs will result in short supplies for the entire month of July,” Neil Shah from Counterpoint Research states.

Additionally, due to the regional lockdown and factories operating at partial capacity due to social distancing norms, “the situation will take longer to improve than expected earlier, with supply bottlenecks clubbed with anti-Chinese sentiments,” says IDC’s Upasana Joshi.

Due to short supply, several retailers have reported a huge slump in their numbers. A leading retailer from the southern part of India, Sangeetha Mobiles, that was able to clock 90% of pre-Covid sales, reported a dip of 40% in July. Online retailer, OlineO has reported that it was only able to fulfil 50 orders a day compared to 300 orders that it could serve in June when supplies were proper.

While the industry saw a huge uptick in the demand ever since the relaxations in lockdown mainly attributed to remote working and remote educational needs in new normal, the pent-up demand will eventually fade. However, retailers who’re still under a lot of financial pressure due to the lockdown, can do nothing but rue this missed opportunity.

Jitendra Soni

Jitendra has been working in the Internet Industry for the last 7 years now and has written about a wide range of topics including gadgets, smartphones, reviews, games, software, apps, deep tech, AI, and consumer electronics.  

Latest in Phones
The Samsung Galaxy S25 Edge on display the January 22, 2025 Galaxy Unpacked event.
Samsung Galaxy S25 Edge colors seemingly revealed in new video, and there’s another sign of an imminent launch
Apple iPhone 16 Pro REVIEW
The iPhone 17 Air looks impressively slim in this new comparison image, but that just makes me more worried about the specs
Two Android phones on a green and blue background showing Google Messages
Google Messages just added a fun upgrade to one of its best chat features
Samsung Galaxy S25 on a blue deals background
Bored with your iPhone? The ‘incredible’ Samsung Galaxy S25 just hit a record-low price in the Amazon Spring Sale
Samsung Galaxy S25 from the front
The Now Bar on Samsung One UI 7 is about to get a lot more useful – and could soon match Live Activities on iOS
An iPhone running iOS 18 on a purple and blue background
iOS 18.4 could launch soon with a major upgrade to your iPhone’s notifications
Latest in News
EA Sports F1 25 promotional image featuring drivers Oscar Piastri, Carlos Sainz and Oliver Bearman.
F1 25 has been officially announced, with this year's entry marking a return for Braking Point and a 'significant overhaul' for My Team mode
Garmin clippd integration
Garmin's golf watches just got a big software integration upgrade to help you improve your game
Robert Downey Jr reveals himself as Doctor Doom to a delighted crowd at San Diego Comic-Con 2024
Marvel is currently making a major announcement about Avengers: Doomsday's cast on YouTube, and I think it's going to be a long-winded reveal
Samsung QN90F on yellow background
Samsung announces US prices for its 2025 mini-LED TV lineup, and it’s good and bad news
Nintendo Switch Lite
Forget the Nintendo Switch 2, the original Switch is getting one last hurrah in a surprise Nintendo Direct tomorrow
The Samsung Galaxy S25 Edge on display the January 22, 2025 Galaxy Unpacked event.
Samsung Galaxy S25 Edge colors seemingly revealed in new video, and there’s another sign of an imminent launch