Oppo, Xiaomi And Vivo Reduce Smartphone Orders By 20%: Here's Why

Owing to local coronavirus-induced lockdowns, top Chinese handset makers Vivo, Xiaomi and Oppo have slashed their orders to suppliers by almost 20 per cent.

New Delhi: Owing to local coronavirus-induced lockdowns, top Chinese handset makers Vivo, Xiaomi and Oppo have slashed their orders to suppliers by almost 20 per cent from earlier plans. The reduced orders to suppliers of smartphone OEMs are also due to the dipping consumer confidence and severely disrupted supply chains, the media has reported.

According to a report published in Nikkei Asia citing sources, smartphone OEM 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. Xiaomi's rivals and other Chinese handset makers Vivo and Oppo have also 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 added.

This development comes amid dwindling demand for smartphones and PCs or laptops that has dropped "like a rock" and the current global situation and Covid-19 lockdowns can wipe off 200 million units of handsets in 2022, according to a top Chinese chip-maker. 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, Semiconductor Manufacturing International Corporation (SMIC) in China has recently cautioned.

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.