Manufacturing Halt: Smartphone Brands Facing ‘Out of Stock’ Problems

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  • Oppo’s manufacturing facility in Noida is on a halt following Covid 19 cases
  • Samsung and Xiaomi are also facing difficulties in meeting demand for sub Rs 15,000 smartphones

BBK’s three smartphone brands – Oppo, Realme and Oneplus are finding it difficult to meet demands of smartphones in the Indian markets. Manufactured at Oppo’s facility in greater Noida, various of the models sold by these, are neither available in online, nor in offline channels.

Another report points out that Samsung and Xiaomi are also facing similar problems in India. It is to be noted here that Xiaomi, Samsung, Oppo and Realme are among the top five most selling smartphones brands in the country.

India was the only country to see growth

According to the International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker, India’s smartphone market saw a relatively flat opening quarter with year-over-year (YoY) growth of 1.5 per cent to 32.5 million units in 1Q20. Despite that, India was the only country amongst the top three to see any growth, as both China and USA markets declined YoY by (-20.3 per cent) and (-16.0 per cent ) respectively in 1Q20. Inventories remained high throughout the distribution channels due to seasonally low demand in the first quarter, clubbed with the COVID-19 impact from mid-March 2020 onwards as the nationwide lockdown was announced.

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“The online channel grew by nine per cent YoY in 1Q20 due to multiple new launches, attractive discounts, cashback offers, and affordability schemes registering a share of 43.1 er cent. On the other hand, offline channel shipments declined by 3.5 per cent YoY, owing to fewer consumer offers, fewer retail walk-ins, and a more aggressive portfolio available on e-Tailer platforms across leading brands,” says Upasana Joshi, Associate Research Manager, Client Devices, IDC India.

Xiaomi shipments grew by a modest 3.4 per centYoY, registering total shipments of 10.1 million in 1Q20. Vivo was in second place with strong YoY growth of 63.3 per cent in 1Q20. Samsung at the third position registered its lowest ever shipments in the past five years, declining by (28.4 per cent) YoY in 1Q20. Realme surpassed OPPO for the fourth position in 1Q20. OPPO slipped to the fifth position in 1Q20, but with a YoY growth of 41.0 per cent.

A lot of Realme, Oppo and OnePlus devices are made at the Oppo’s facility. Vivo, Oppo, Realme and OnePlus operate under the umbrella of China-based BBK.

Continue reading….

Oppo Halts Operations at Noida Factory as Workers Test Corona Positive

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