The Android smartphone manufacturers are reported to have drastically reduced orders for new devices. However, the decline affected not only Android phones. Apple has also reportedly reduced iPhone orders.
Recently there was information that young users have not changed their mobile phones for 4 years. The reasons why people do not want to change mobile phones are not only because of the increased price. Another reason is the constant lack of innovation from Android smartphone manufacturers. However, the lack of innovation is even more pronounced on Apple’s side. The same design with bangs has not been changed for 5 years.
Prominent analyst Ming-Chi Kuo claims that major Chinese Android phone makers have slashed orders by around 170 million devices this year. This is 20% less than originally planned. If consumer confidence continues to decline, orders could drop again in the next few months. At the same time, the shortage of chips in the industry is aggravated, and the delivery time of some chips now exceeds 6-9 months.
“If the order reduction is so severe, then a price war is inevitable, argues Ming-Chi Kuo.”
Such a large reduction in orders will affect the entire supply chain, as well as chip suppliers. According to reports, Android manufacturers have asked Qualcomm and MediaTek to cut prices to stimulate demand in the mobile phone market. That being said, MediaTek and Qualcomm are currently reluctant to do so. When the situation worsens, brands are more likely to have to start fighting for orders for their chips. If the order reduction is so severe, then a price war is inevitable, argues Ming-Chi Kuo.
