The ongoing COVID-19 pandemic may badly hurt the smartphone shipments in the months of March and April compared to the previous year, according to latest data by said industry analysis firm Counterpoint Research.
What is more worrying is that the outbreak has been spreading, and the country is still under lockdown.
“We are estimating a YoY 27% decline in March shipments and almost 60% for April assuming lockdown will be until 14th April. This translates into a revenue loss of ~$2 Billion for the Industry till the lockdown period,” said Tarun Pathak, Associate Director at Counterpoint Research.
“If it extends it will be higher loss which could affect the entire supply chain and the channels in terms of revenue, payments as well”, Pathak added.
The data further added that the Indian smartphone market would experience a decline of 3% YoY in 2020. Last year, India smartphone shipment stood at 158 million.
Due to the ongoing COVID-19 lockdown, consumer demand will also be limited and have an impact on smartphone sales.
“Demand will consequently shift to the second half of the year. Even if the situation stabilizes by mid-year, people may hold their purchase until the festive season”, added Pathak.
Online sales of smartphones have also been hit due to the smartphone being in not in the essential category of items that have been allowed to be delivered by the govt during COVID-19 pandemic.
In the last couple of months, smartphone production in the country has witnessed a slowdown. The smartphone industry has been struggling with supply shortages due to the shutdown of factories in China. According to a report by Cybermedia Research, smartphone production in India will go down by 38-40% in the first half of 2020.
Top smartphone sellers in the country like Xiaomi and Realme postponed their scheduled smartphone launches due to corona pandemic.
The total number of COVID-19 cases have climbed to 2300, according to the health ministry. The death toll was at 56. On 24th March, PM Narendra Modi announced a 21-day nationwide lockdown to curb the spread of the virus.