Xiaomi is arguably one of the largest telephony and technology companies in the world. The numbers are the witnesses of the success and together with her other giants are making a lot of money. For example, Oppo e live they travel at a very fast pace, especially in Europe. However, in the last period there are "hitches". According to a Relationship of Nikkei Asia in fact, these three companies have decided to significantly reduce smartphone production and orders. Fortunately, their wallet is not based only on that, on the contrary, as far as Xiaomi is concerned, the bulk comes from the IoT ecosystem.
Xiaomi, Oppo and vivo are among the companies that are reducing the production of smartphones. The reasons are few and even simple: crisis and Covid-19
Analysts' predictions of a noticeable decline in smartphone shipments in 2022 are starting to come true. According to a study by TrendForce, the volume of smartphone production in 2022 will decrease by 13% compared to last year. Analysts attribute the downturn to the ongoing fight against the coronavirus pandemic hitting the supply chain and production, as well as rising inflation. Also, according to Nikkei Asia, the three largest Chinese manufacturers represented by Oppo, live e Xiaomi they have seriously cut back on supplier orders by revising their original plans for the current year.
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The report states that Oppo, vivo and Xiaomi have reduced the volumes of orders for the second and third quarters of approximately 20%. Thus Xiaomi, which now occupies the third position in the supply of smartphones in the world after Samsung and Apple, has changed its annual forecast from 200 million devices to 160-180 million. For comparison, the company shipped 191 million devices last year.
All of this was the result of a fort drop in demand of smartphones and personal computers, as well as restrictions related to the pandemic of coronavirus. These and other factors could cut smartphone shipments by 200 million in 2022, according to SMIC, China's largest semiconductor maker. The company also noted to see no signs of a recovery of the market in the near future. Add to this a increase in raw material costs triggered by the Ukraine-Russia conflict.
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