China’s leading smartphone makers have told suppliers to scale back orders for the coming quarters by around 20% from previous plans following month-long Covid-19 lockdowns that have severely disrupted supply chains and battered consumer confidence, reports the Financial Times.
Xiaomi, China’s biggest smartphone maker and the third biggest globally, has told suppliers that it will lower its full-year forecast to around 160 million to 180 million units from its previous target of 200 million. Xiaomi shipped 191 million smartphones last year and is aiming to become the world’s leading smartphone maker. The company could adjust its orders again as it continues to monitor the supply chain situation and consumer demand in its home market.
Vivo and Oppo have also reduced orders for this quarter and the next by about 20% in an attempt to digest excessive inventories currently filling retail channels. Vivo has even alerted some suppliers that it will not update specifications for some key components going into some midrange smartphone models this year, citing efforts to reduce costs amid inflation concerns and dwindling demand.