Global Chip Shortage inflicts more stress on smartphones manufacturers like Realme and Xiaomi

We have been discovering for a few weeks now that there is a huge shortage of semiconductors in the market. This chip shortage is affecting both, the smartphone industry and the automobile industry heavily. 

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Recently, we have heard from a few automobile companies in India that the lack of semiconductors is increasing their production time. This is delaying their process to pass the cars to the customers. Now, the senior officials of Chinese smartphone manufacturers have come out and expressed their concerns regarding the shortage of chipsets. Both, Realme and Xiaomi have said that this fall in the supply of chips can be a major worry for the industry in the coming months.

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A global shortage in semiconductors will make it tougher for companies to produce new products. If this happens, the prices of the existing products in the market will surely go high due to low supply & high demand. In fact, one of the reports seen in the market shows that mobile chipsets are “completely out of stock.” 

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The main reasons behind the global shortage of chips are issues pertaining to materials, power supply, and radiofrequency devices. Lu Weibing, President of Xiaomi, also stated last month that this lack of chipsets is not an ordinary issue and can have huge ramifications for both, sellers and buyers. 

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A report also suggests that Qualcomm’s material deliveries have been delayed by more than 30 weeks. The delivery of the CSD Bluetooth audio chips also took around 33 weeks. In total, this shortage is present in mobile phone processors, PMIC power management chips, and MCU microprocessor chips. If this stock out continues, then not only Realme and Xiaomi but other OEMs like Huawei, Oppo, Vivo, and OnePlus might also suffer.

Source 1 Source 2

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Sanidhya Bhardwaj
A football lover who is doing an MBA in finance and currently covering every news related to smartphones. I believe in diversification, both, in life and in my trading portfolio. Do check out my blogs to be aware of the recent happenings around you!

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