Business

There is a crisis in the smartphone market

There is a crisis in the smartphone market

Indian electronics manufacturer Jio has postponed the release of a smartphone jointly developed with Google due to a shortage of microchips, Reuters reports. Previously, experts and manufacturers have repeatedly predicted a in the smartphone market due to this global problem.

It was planned that the budget phone JioPhone Next will appear on the Indian market on September 10, but the launch was postponed until November. At this time, the country is going through the holiday season, when Indians make expensive purchases, including electronics. It is planned to improve the development and make it even cheaper in two months. Jio also expects that the shortage of semiconductors will be reduced during this time.

However, the current crisis, according to the most optimistic forecasts of experts, may continue until the second quarter of 2022. The fact is that semiconductor manufacturers have focused on supplies to the automotive industry — the industry has been most affected by the shortage of microchips caused by the coronavirus. Tesla, Toyota, Volvo, and other car manufacturers have been forced to reduce or suspend production. At the same time, the mass transition to remote work has increased the demand for laptops and phones, and their manufacturers are faced with a growing shortage of chips.

Apple’s main partner in the assembly of devices warned that in the third quarter of 2022, fewer electronics will be released than in the spring, while autumn is traditionally the peak of activity of the global electronics industry. A decline in production will lead to a decrease in sales. Samsung has said that it will probably have to significantly reduce production. Qualcomm, one of its main suppliers of semiconductors, said that it could not meet the demand for its products. It is expected that the release of a smaller number of phones will lead to their rise in price.



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