Hit hard by the domestic Covid-19 lockdowns, top Chinese smartphones makers have slashed their orders by nearly 20 per cent for the current quarter (Q2) and the next, the media reported on Wednesday.
According to a Nikkei Asia report, Xiaomi, Vivo and OPPO have trimmed smartphone orders by 20 per cent, amid severely disrupted supply chains.
“Xiaomi has told suppliers that it will lower its full-year forecast to around 160 million to 180 million units from its previous target of 200 million,” the report said, citing sources.
Xiaomi, currently the third biggest smartphone makers behind Samsung and Apple, shipped 191 million smartphones last year.
Vivo and OPPO have also reportedly reduced orders for this quarter and the next by about 20 per cent.
“Vivo has even alerted some suppliers that it will not update specifications for some key components going into some mid-range smartphone models this year, citing efforts to reduce costs amid inflation concerns and dwindling demand,” the report mentioned.
With the start of this year, smartphone suppliers had expected a quick recovery in the post-Covid era.
The companies were yet to comment on the report.
The demand for smartphones and PCs or laptops has dropped ‘like a rock’ and the current global situation and Covid-19 lockdowns can wipe off 200 million units of handsets in 2022, warned Semiconductor Manufacturing International Corporation (SMIC) in China.
The SMIC alerted that the lockdowns will result in 200 million less smartphone units this year.
The SMIC predicted a gloomy outlook for consumer electronics demand, saying it sees no sign of a recovery anytime soon, reported South China Morning Post.
The Shanghai lockdown could reduce production by five per cent this quarter.
China also suffered a major setback as its semiconductor output shrank 12.1 per cent to 25.9 billion units in April, its lowest since December 2020.
Disrupted supply chains amid logistics issues have paralysed some of the country’s largest manufacturers.
Shanghai now aims to reopen and allow normal life to resume from June 1.