Popular handsets of leading brands including Xiaomi, Samsung, Apple and Realme are not available to purchase neither from ecommerce marketplaces nor from retail stores as supplies of some handsets are at an all-time low varying between 20% and 30% of the actual demand.
The Economic Times citing industry executives mentioned in a report that brands had filled the channels during Diwali and ensured availability even when supplies were low, but now several top-selling models are completely stocked out with supplies of most brands badly affected since end-October. Market researchers like IDC and Counterpoint feel this would impact sales during the October-December quarter.
“Supplies of popular models for some smartphone brands have become extremely low after Diwali and currently it’s just a fraction of the demand. As a result, the stock situation is extremely low. There is no clarity from the brands when supplies will improve,” the publication quoted a senior executive with a leading cell phone retail chain in the South as saying.
The smartphone manufacturers are hit by continuing global shortage of semiconductor chipsets and some diversion of stock to the West where retailers and ecommerce companies are preparing for the year-end holiday sales now that peak buying Diwali season is over in India, the financial daily mentioned.
Counterpoint’s research director Tarun Pathak told the publication this year’s festive season, brands had managed to accumulate some stock whereby demand and supply were at neck-and-neck with pressure on supplies.
“Post Diwali, there is a drop in demand by 30-40% like any usual year but supplies are even badly impacted due to chipset shortage. Earlier years, the post Diwali demand would be catered by the unsold inventory, which is nil this year. We expect this acute shortage of popular smartphone models will linger on till year-end when brands will again try to accumulate some stock for India,” the business daily quoted Pathak as saying.
Although the shortage is across price points, maximum shortage is seen in entry-level to sub-Rs 20,000 and super premium handset segment. In Amazon, all iPhone models are stocked out except the two-year old iPhone 11. Flipkart is stocked out of iPhone 13, while at Apple-owned e-store, iPhone 11 and 13 Pro series have a delivery lead time of two-three weeks.
