Today, our nation entered Lockdown 5.O, that is, the first phase of a three-phase plan to unlock our country resuming regular tasks outside our home. This COVID-19 Pandemic has triggered down sales, markets, and market-based economy of the nation.
Smartphone Sales In India, 2020
International Data Corporation (IDC) had predicted that the Indian smartphone market could hit low around 130 million handsets while the estimated number was 140 million. According to Counterpoint, the market could make up to 137 million with an earlier outlook as 142 million. Last year, India sold 154-158 million smartphones and beat the US to become the second-largest smartphone market worldwide. This year, there will be a scope of demand only in the festive season, otherwise, the situation would be worst as it is today.
Indian Smartphone Market sales will decline by 13-15% due to COVID-19.
Declination of Indian Smartphone Market ?
There are many reasons for this downswing of smartphone sales in our country.
- Recession and Salary Cuts due to which customers will adjourn purchases
- Companies will not upgrade their production norms
- Increase in GST on smartphones about 12-18%
Counterpoint’s associate director Tarun Pathak said factories are running at 20-30% capacity and may not pick steam till the Covid-19 curve starts to flatten, may be around July.
IDC India research director Navkendar Singh said, “the situation is very volatile and a pessimistic view has been taken due to extended lockdown, plants not able to operate whereby there are supply issues, and consumers not eager to upgrade handsets. These will impact the replacement market which has been driving smartphone sales since 2017.”
“The sub-Rs 10,000 segments will take a hit, while Rs 10,000-25,000 segment may still sell but will not be able to make up for the lost ground. The current pent-up demand will taper-off by June,” he added.