Smartphone Vendors to Face Huge Issues This Festive Season

Smartphone vendors (offline stores) aren’t expected to do the same kind of sales they used to previously because of the supply issues. The chipset shortage has caused a major dent in the volume of smartphones manufactured which also affects the companies.

Highlights

  • The online stores won’t be hit as hard as the offline stores
  • Smartphone retailers will face huge issues in the coming festive season
  • The smartphone supply volume has dipped due to the low production levels

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Smartphone retailers will face huge issues in the coming festive season. Usually, people spend most of their money buying electronics during Dhanteras or the festive season of Dussehra and Diwali. But due to the pandemic and the snags in the supply chain of the smartphone components, it has been difficult for the companies to manufacture in the same capacity as they used to. Further, the cost of production for the companies has also increased.

Chipset Shortage Isn’t Going Away Any Time Soon

The online stores won’t be hit as hard as the offline stores. The chipset shortage has become a global issue and isn’t just limited to the Indian market. Smartphone retailers and vendors always look up to the festive season of Dhanteras, Diwali, and Dussehra to earn good money. But this time around, because of the limited stock, they might not be able to do so.

The smartphone supply volume has dipped due to the low production levels. The chipset shortage has made it hard for the companies to manufacture in the volume they could pre-pandemic.

Due to not being able to get the smartphone through an offline store, many people are expected to flock to online stores for purchasing. This will mean the online stores might see better days ahead than the offline stores which will be hit with supply constraints.

This is not just going to affect the offline stores, but also the smartphone companies. The companies and the stores' bank on the festive seasons to earn a major chunk of their revenues. But things won’t be the same this time around.

There’s a high chance that the model you are looking for might not be available in the offline store but be available online on an e-commerce website. Since the time COVID-19 has come, more and more people have flocked to online stores for making smartphone purchases. The same trend is only expected to grow in the near term.

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Tanay is someone with whom you can chill and talk about technology and life. A fitness enthusiast and cricketer, he loves to read and write.

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