High-end electronics, smartphones in shortage ahead of Diwali shopping season
High-end electronics, smartphones in shortage ahead of Diwali shopping season | Photo credit: iStock images
High-end electronics and devices were scarce on the market before the crucial Diwali purchases. Several premium category smartphones from Apple iPhone 11, 12, 13, Samsung Galaxy Fold and Flip series, high-end TVs and imported devices from most brands are either out of stock or in short supply. The supply of these products is 15 to 30% lower than market demand.
Avijit Mitra, general manager of retail chain Tata Chroma, told Economic Times that supply is unpredictable. Strong sales during the Navratri period from October 2 to 15, led by online channels such as Amazon, Flipkart, and retail chains such as Reliance Digital, Chroma, Vijay Sales and Great Eastern Retail contributed to crisis.
Flipkart and Amazon had anticipated the surge in sales and stocked inventory much earlier, which is why the situation is better with online marketplaces.
Supply from Apple, which shipped more than 2 million iPhones to India in the last quarter, is the worst on record by retailers and executives and demand is high. The report says that even for a two-year-old model like the iPhone 11, Apple’s own online store takes 3-4 weeks to ship. Flipkart is out of stock for iPhone 12s while other retailers take nearly a week to deliver. Even the latest iPhone 13 is out of stock, with Apple’s own online store taking up to a month to make deliveries.
Samsung India has sent distress calls to the company’s headquarters in South Korea for delivery of super premium smartphones currently manufactured there, the report added. China’s Xiaomi has warned a few large brick-and-mortar stores that they could face a supply delay in the next 7-10 days.
A Xiaomi spokesperson quoted in the report said the supply issues could be attributed to the pandemic. The brand saw a massive increase in demand during the holiday season. The smartphone maker said it was working with various vendors to meet demand given a huge mismatch between demand and supply. It increases local production to solve the problem.
The supply problems have been attributed to an acute shortage of chips and semiconductors, which are crucial to the manufacture of electronic devices such as smartphones and televisions, in recent weeks. Additionally, shipping containers are scarce among retailers and online stores in Western countries stocking up for the holiday season sales.
BSH Household Appliances, which sells Bosch and Siemens appliances in India, said the company was unable to meet 15% of total demand due to supply issues. The best-selling imported premium range is out of stock, he added.
LG Electronics, the largest home appliance maker in India, said high-end imported products priced between Rs 75,000 and Rs 1 lakh are scarce.