Demand for electronics outpaces supply ahead of Diwali

With only a week away for Diwali, the demand for premium consumer electronics and smartphones has outstripped supply with several popular models vanishing from the market, according to The Economic Times report. According to retailers and industry executives, various best-selling models like Apple 11,12 and 13 series, Samsung’s Galaxy, Fold and Flip models, high-end television models and imported appliances across most brands have low supplies or are either out of stock. They also said that the shortage is 15-30% of potential demand.

During the Navratri period, the robust sales in online marketplaces such as Flipkart and Amazon and brick and mortar retailers like Reliance Digital and Croma had magnified the supply crunch.

Croma reported that the unpredictability in supplies continued in appliances (premium end and imported models), where chips are required.

Delay in delivery

Apple on the other hand is facing the worst ever supply situation at present, owing to the steep demand. The iPhone maker has shipped more than two million handsets to India in the previous quarter, which is a record in itself, according to market researchers. Despite all this, Apple’s online store has a delivery lead time of three to four weeks, for even two-year-old models like the iPhone 11.

Even popular variants of the iPhone 12 in Flipkart are out of stock, while others have a delivery lead time of a week. The newly launched iPhone 13 Pro models are out of stock with a delivery time of over a month on Apple’s own online store.

According to LG Electronics, high-end imported products priced between Rs 75,000 and Rs 1 lakh and above have been facing supply constraints.

The shortage will increase if there is a delay in shipments, and a demand surge in the coming 7 to 10 days, it added.