Smartphones: Diwali won’t be dhamaka this year; chip shortage likely to impact festive launches of consumer electronics

The ongoing shortage of semiconductors and related electronic components, which has impacted India also, is likely to spoil the festival season for smartphone makers and consumer electronics players, as analysts anticipate fewer launches and an uptick in prices in the range of 5-8%.

Counterpoint Research has revised downwards its smartphone shipment numbers for 2021 calendar year to 6% at 1.4 billion units. It had earlier projected an annual growth of 9%. The smartphone industry was set for a strong rebound this year after Covid had hit the market hard in 2020.