Chip Dearth, Logistics Snags, Variants Stifling Smart Speaker Growth: SA
Chinese vendors are feeling the brunt of the global component shortage among smart speaker makers, said Strategy Analytics Monday. Earlier forecasts showed strong growth returning in 2021 if component supply eased, but “this scenario is not playing out,” said SA…
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analyst David Watkins. China typically accounts for 30%-40% of the global market each quarter, he said, “so challenges experienced by Alibaba, Baidu, and Xiaomi will be indicators for how well -- or not -- China is managing its supply chain issues.” Contract manufacturers partnered with the three companies -- along with dozens of other smart speaker and smart display brands -- are facing “a prolonged period of supply chain issues,” Watkins said. Citing component shortages, shipping and logistics challenges, and the delta and omicron COVID-19 variants, analyst Jack Narcotta said smart speaker market growth won’t return to pre-COVID-19 levels “until at least 2023.”