Chennai: Global supply chain constraints and lack of chip and other electronic components is very heavy in the consumer bag of this celebration season.
Even as a consumer e-commerce platform with Cashback, EMIS and trade campaigns, analysts and industry officials said the price of many mass market mobile models that are currently sold 8-10% high.
The festive season is also the preferred time for smartphone brands to launch flagships, but it also hasn’t happened this year.
Student research manager IDC Upasana Joshi said that the average selling price (ASPS) of smartphones rose from $ 155-163 to around $ 180 in the recent quarter, partly because of the increase in OEM and more 5G models in the image.
“However, e-commerce sales run strong this year despite the ‘Shradh’ season because the platform offers discounts in advance and exchange programs,” he said.
Prices rise 5-10% in certain models due to rising component prices, but brands find ways to be competitive with the back launch model with new chipsets, tweak accessories that come with a telephone, and through various promotions, Counterpoint research analyst says.
Counterpoints are found in the analysis that some OEMs and smartphone vendors only receive around 70% of requests placed for the main components, “and the situation seems to worsen when we move through Q3 2021”.
The company has lowered the estimated shipment for growth of 2021 to 6% compared to 9% projected previously.
Executives with price comparison sites also said that mass models from brands such as Xiaomi, Oppo, Vivo and Realme have recorded an increase in the range of Rs 500-1,000 (around 10%).
Xiaomi officials told TII take proactive steps to improve local manufacturing capabilities earlier this year to defeat global supply chain problems.
“Apart from new changes, we will continue our promise to only maintain a 5% profit margin on hardware and optimize our costs so we can offer the best prices we can for consumers,” said a spokesman for the company.
This brand has sold more than two million smartphones in just four days of festive sales throughout the channel, he added.
Analysts say the lack of components is not possible to subside until the second half of 2022 and will turn into a crisis for the smartphone industry later, translate to longer waiting times and an increase in retail prices for consumers.
Semiconductor chips have had a short supply price and components on the increase last year for various reasons, including factory closure globally due to covid pandemic, lack of container, increasing shipping costs, and a sharp increase for cars and consumer electronics demand hidden.
The CEO of Apple Tim Cook has warned in July that supply constraints will affect the sale of iPhone and iPad.
Deficiencies are not in high-powered processors, but in computer chips that perform functions such as driving displaying or activating audio, Cook has said it.