China-made phone, TV stocks start vanishing

Kolkata: Supplies of iPhones and other handset brands are running low at shops in India as disruptions stemming from the Covid-19 outbreak in China start to bite. Also hit are Xiaomi, TCL and Realme phones, said multiple cellphone and electronic retailers. In the past week to 10 days, only 10-20% of the usual number have been sent to stores, they said.Apple is the worst hit with many stores saying the iPhone 11series has almost dried up as have some models of the Apple Watch, according to three senior industry executives.Supplies of the locally manufactured iPhone XR and 7 are not impacted, they said TCL and Xiaomi televisions too are in short supply and Xiaomi is postponing its entry into air-conditioners by a few weeks. The fourth-largest smartphone brand Realme is facing a squeeze on the supply of new smartphone models like the C3 and 5i, the executives said. 74432366 Retailers said discounts on products have come down and some products such as iPhones, MacBook computers and Apple Watches are now sold at the sticker price in offline stores. While plants have resumed operations in China, they are functioning at about 35-50% of capacity. As a result, the prices of some components have already risen, forcing manufacturers to increase the prices of TVs, some smartphones and ACs by 5-10% from this month.“There are supply issues for several brands. There is no clarity when the situation will normalise,” said Nilesh Gupta, director at Vijay Sales, a leading electronics retailer in Mumbai and New Delhi. “If it doesn’t get corrected fast, we may move into a stock-out situation from next month.”Retailers Start Stocking upVishal Mewani, director of Mumbai’s leading chain Kohinoor Electronics, said the impact is more for brands like Realme, TCL and Xiaomi. “We are getting 10-20% of the required quantity,” he said.A Xiaomi India spokesperson said the extended shutdown in China has led to a small impact on the supply chain for televisions for early March. “We are working towards balancing the demand in India which should be met soon,” the person said. The foray into ACs is speculative and Xiaomi won’t comment on that, the person said.Realme India said there was a shortage of a few imported components due to factories of several vendors having postponed resumption after recent closures. But almost all major suppliers are back at work and the situation will improve soon, the spokesperson said. Realme said workers at the factories are working multiple shifts and it is confident of launching new products as planned.Apple did not respond to queries. TCL India declined to comment.Fearing disruption, retailers have started stocking up on some products such as air conditioners, imported TVs, washing machines and refrigerators. Retailers are building up inventory anticipating short-term supply constraints, said Pulkit Baid, director at Great Eastern Retail, a leading chain in the east and the north.Most consumer electronics and smartphone makers are heavily dependent on China for the manufacture of finished products and components. The virus has also spread to South Korea, which is home to Samsung and LG. South Korea is a base for imported products sold in India and high-end components.Apple was the first to say last month that supplies from China had been badly hit as manufacturing partners are ramping up production slower than expected.The senior executive of an Apple exclusive store chain said distributors have indicated supplies will normalise only by April since most production is being routed to the US and Europe. “Business is down by 50% last week and March is looking bleak,” he said.

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