Smartphone demand drops 'like a rock', 200mn less handsets this year

The demand for smartphones and PCs or laptops has dropped 'like a rock' and the current global situation and Covid-19 lockdowns can wipe off 200 million units of handsets in 2022, a top Chinese chip-maker has warned.

According to Semiconductor Manufacturing International Corporation (SMIC), China, lockdowns will result in 200 million less smartphone units this year, reports South China Morning Post.

The SMIC predicted a gloomy outlook for consumer electronics demand, saying it sees no sign of a recovery anytime soon.

The Shanghai lockdown could reduce production by five per cent this quarter.


"We are trying to make up for the production losses before the end of June using our factories outside Shanghai, but the losses may not be compensated," SMIC Co-CEO, Zhao Haijun said during an earnings call late on Friday.

"Chinese smartphone vendors could reduce shipments by 200 million units this year. Many orders (from smartphone makers) were cancelled," he added.

"We expect a five per cent production loss during the second quarter," said the company.


SMIC is still dealing with delays in equipment shipments for some of its foundries currently under construction.

The US sanctions remain another challenge for the Chinese chip giant.

The Chinese mainland has reported 222 confirmed local Covid-19 cases, of which 144 were in Shanghai.


Shanghai also reported 1,305 locally transmitted asymptomatic infections on Wednesday, of a total of 1,630 such Covid cases newly identified on the mainland, reports Xinhua news agency. - IANS