Xiaomi, Vivo, and Oppo are now reducing their orders by 20% because of China's COVID-19 lockdowns, which affected supply chains.
(Photo : Tomohiro Ohsumi/Getty Images)
Chinese tourists wearing masks use smartphones in the Ginza shopping district on January 24, 2020 in Tokyo, Japan.
This means that they'll ship fewer units compared to 2021. As of writing, the Asian country is still implementing strict health protocols.
Because of the lockdowns, the three leading Chinese smartphone makers decided to make some changes to deal with inflation concerns and other issues.
Xiaomi, Vivo, Oppo Orders Reduced by 20%
According to Nikkei Asia's latest report, Xiaomi announced that its original 200 million orders this 2022 have been adjusted.
(Photo : JOSEP LAGO/AFP via Getty Images)
The Mobile World Congress, where smartphone and telecoms companies show off their latest products and reveal their strategic visions, is expected to welcome more than 40,000 guests over its four-day run.
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The Chinese smartphone maker said that they are now only aiming for around 160 million to 180 million orders.
This is around an 11 million to 31 million shipment difference since Xiaomi was able to deliver more than 191 million handsets back 9in 2021.
On the other hand, Vivo and Oppo said that they also changed their unit order goals. But, they did not confirm the new numbers for their expected orders.
Aside from reduced smartphone orders, Vivo also said that they will not update key components of some midrange smartphones. The tech firm explained that this is needed to reduce costs as the inflation rate worsens.
"Most of the slowdowns are really coming from China now, while the demand still looks OK for the U.S., Western Europe, Latin America, and Southeast Asia," said Jeff Pu, a veteran analyst working with Haitong International Securities.
While other the top leading Chinese smartphone makers experience several issues, there are other companies that are seeing growth, such as Samsung.
Honor, a rising Chinese phone developer, seems to have no issues as well since it maintains the 80-million order target this 2022.
Honor Expands Its Business
While Xiaomi, Oppo, and Vivo are limiting their smartphone orders, Honor Device Co. is making efforts to expand its business by raising more capital.
Bloomberg reported that the tech firm is now in talks with investors about a pre-IPO financing round. This means that Honor wants to have foreign fundings to improve its image as an international company.
If you want to see further details about the next plans of Honor Device Co., you can visit this link.
Previously, Apple is reportedly working on a new specialized iPhone case that can automatically change UI.
On the other hand, the giant iPhone maker seems to be testing USB-C iPhones for EU compliance.
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Written by: Griffin Davis
