“We understand that there is hoarding of top models of fast-moving brands, especially in the below $150 segment, in anticipation of a price rise,” said Upasana Joshi, an associate research manager at International Data Corporation, India.
None of the smartphone brands have yet officially increased the prices for their devices<\/a> except for Xiaomi<\/a>, which raised the price of the Redmi Note 8 by Rs 500 in February. However, offline retailers<\/a> in a few places are unofficially selling some devices<\/a> at a 2-3% premium, Joshi said.
“We are unable to fetch some models from wholesalers such as the Oppo Reno series, Oppo A1 and the Vivo V series besides Apple’s iPhone 11,” said a Delhi-based retailer who did not wish to be named. “But, we can’t increase price beyond a certain point as customers can easily buy the device online at the official price,” he added.
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Brands said while they had not yet seen any instance of hoarding, they would take action against anyone doing so.
“As of now, we have been able to meet the demand of the Indian consumer by ensuring consistent stock of most models. We try to avoid the situation where retailers need to hoard the supplies of our phones,” a Vivo spokesperson said in response to ET’s queries.
A Xiaomi<\/a> spokesperson rejected any possibility of hoarding, saying: “If such a thing would be happening, we would know by our daily sales reports.”
At Wuhan, the Chinese city that is the epicentre of the Covid-19 outbreak, major component factories are running at 40% of their capacity. Although the extended Lunar New Year holiday ended on February 9, workers still haven’t returned to work, according to reports.
Market intelligence firm TechArc estimates prices could rise 6-7% for top models of select brands if the disruption in supply chain continued at current levels.
“Buyers may be hit by price shocks during April-June as inventories will dry up by then due to lower imports on account of the extended Chinese New Year holiday in February,” TechArc research director Faisal Kawoosa said.
Though major Chinese brands including Xiaomi, Oppo, Vivo and OnePlus<\/a> assemble their devices within India, they are heavily dependent on China for parts such as display, battery, memory and printed circuit boards.
Besides these, Apple’s latest models including the iPhone XR and iPhone 11 are entirely shipped from China.
The brand does not modify prices as per demand-supply equation and thus the attempt to hoard becomes irrelevant, a person aware of company’s strategy said.
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