• 288 days Will The ECB Continue To Hike Rates?
  • 288 days Forbes: Aramco Remains Largest Company In The Middle East
  • 290 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 690 days Could Crypto Overtake Traditional Investment?
  • 695 days Americans Still Quitting Jobs At Record Pace
  • 697 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 700 days Is The Dollar Too Strong?
  • 700 days Big Tech Disappoints Investors on Earnings Calls
  • 701 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 703 days China Is Quietly Trying To Distance Itself From Russia
  • 703 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 707 days Crypto Investors Won Big In 2021
  • 707 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 708 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 710 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 711 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 714 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 715 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 715 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 717 days Are NFTs About To Take Over Gaming?
  1. Home
  2. News
  3. Breaking News

India's Tech Sector Takes A Hit On Supply Issues

India Tech Sector

It was only a matter of time before smartphone and other electronic shortages from top brands, including Apple and Xiaomi, were seen in India amid supply chain disruptions in China. Many of these companies have production facilities in China, with factory output at half to idle speed because of the Covid-19 outbreak.

The Economic Times (ET) says supplies of made in China smartphones and electronics are dwindling at Indian shops. Suppliers told ET that in the last 7-10 days, only 10-20% of the average shipment had been sent to stores.

Supply disruptions have mainly hit iPhone X models, due mostly because iPhone XR and 7 are locally manufactured. Suppliers noted that TCL and Xiaomi smartphones and televisions from China are in short supply. Shenzhen-based Realme was another brand that was facing shipment delays to India.

ET said shortages of high-tech goods had forced many retailers to stop offering discounts in the last several weeks. There's also reports that some prices of smartphones and TVs rose 10% last month due to manufacturers resourcing components, which has driven up overall costs.

"There are supply issues for several brands. There is no clarity when the situation will normalise," said Nilesh Gupta, director at Vijay Sales, a top electronics retailer in Mumbai and New Delhi. "If it doesn't get corrected fast, we may move into a stock-out situation from next month."

A Xiaomi India spokesperson told ET that supply chain disruptions in China are expected in early March. "We are working towards balancing the demand in India, which should be met soon," the spokesperson said.

Indian retailers have been building inventories of smartphones, television, air conditions, washing machines, and refrigerators since supply constraints developed in China last month.

The virus has gone global, now affecting South Korea and Japan, two top manufacturing hubs of electronic companies that have had some multinationals idle or close some plants because of the virus outbreak.

What's coming down the pipe for the US is much of the same supply constraints seen in India at the moment. Major retailers, such as Target and Walmart, could experience shortages of products starting later this month or in April. Amazon has already warned several products could be "unavailable" in the weeks or months ahead.

By Zerohedge.com 

Back to homepage

Leave a comment

Leave a comment