China's Smartphone Market Takes Massive Hit with 200 mn Less Handsets to Sell This Year

The Shanghai lockdown could reduce production by five per cent this quarter.
China’s Smartphone Market Takes Massive Hit with 200 mn Less Handsets to Sell This Year

The demand for smartphones and PCs or laptops in China has dropped 'like a rock' and the current global situation and Covid-19 lockdowns can wipe off 200 million units of handsets in 2022, a top Chinese chip-maker has warned.

Lockdowns to result in 200 million fewer smartphone units this year, reports South China Morning Post, according to a report by Semiconductor Manufacturing International Corporation (SMIC), China. 

Moreover, the SMIC predicted a gloomy outlook for consumer electronics demand, saying it sees no sign of a recovery anytime soon.

The Shanghai lockdown could reduce production by five percent this quarter.

"We are trying to make up for the production losses before the end of June using our factories outside Shanghai, but the losses may not be compensated," SMIC Co-CEO, Zhao Haijun said during an earnings call late on Friday.

"Chinese smartphone vendors could reduce shipments by 200 million units this year. Many orders (from smartphone makers) were canceled," he added.

"We expect a five percent production loss during the second quarter," said the company.

READ MORE: Indian Smartphone Market Grows Just 2 pc Year-on-year On Supply Chain Woes

SMIC is still dealing with delays in equipment shipments for some of its foundries currently under construction.

The US sanctions remain another challenge for the Chinese chip giant.

The Chinese mainland has reported 222 confirmed local Covid-19 cases, of which 144 were in Shanghai.

Shanghai also reported 1,305 locally transmitted asymptomatic infections on Wednesday, of a total of 1,630 such Covid cases newly identified on the mainland, reports Xinhua news agency.

(To know more about what is happening in the retail, D2C, and e-commerce industry, please attend IReC.)  

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