JioPhone Next is not the only phone launch affected by chip shortage: Report

JioPhone Next launch was affected by a shortage of components and shipping delays. However. It is not the only phone launch to be affected.

Several top brands are delaying or limiting the launch of some of their products to certain markets. (Mishaal Rahman/Twitter )

JioPhone Next was announced at the Reliance AGM earlier this year. The smartphone was expected to launch on Ganesh Chaturthi, which was on September 10. The company announced last week that it won't be able to launch the JioPhone Next on September 10. Instead, it is planning to launch the device in the Diwali season. It is being reported that JioPhone Next launch was affected by a shortage of components and shipping delays. Now, a new report from Counterpoint Research says that JioPhone Next is not the only phone to be affected by the chip shortage.

Several top brands are delaying or limiting the launch of some of their products to certain markets. It is due to the production issues, besides hiking prices, industry watchers say. “Some are delaying the launch or launching with a capped production and supply to meet the rising demand for smartphones and other electronics products,” Counterpoint Research analyst and partner Neil Shah said.

“Jio is also not immune to this as it has delayed launch of the much anticipated JioPhone Next, but hopefully not miss the Diwali holiday season as it is staring at a potential of half a billion user base still not owning a smartphone,” Shah added. As per some analysts, the supply chain issues were getting ironed out and larger smartphone makers would not push back their launches. Jio is said to have run into shortage for certain components required for a phone in the budget segment.

The JioPhone Next is tipped to be launched around ₹3,500-4,000. Analysts say the delay will not cause a complete washout if the digital firm manages to meet the festival deadline. Some launches are said to be restricted to limited geographies due to the chip shortage. Reportedly, these challenges have already forced smartphone market tracking firms to start cutting their 2021 shipment estimates by 5-10% for the second time this year.

“Other brands have been steadily improving their shipments and numbers will certainly be lesser than 2020 but we should not expect more delayed launches. Jio must have run into shortage for certain components required for a phone in the budget segment," said Navkendar Singh, research director at IDC, a market research firm.