The smartphone market faces a huge fall due to the current scenario of COVID-19. Less supply is the real cause
The Indian smartphone market contract by 51% within the April-June quarter. Any hopes of a reputable revival now relaxation in the second half, particularly the festive interval in September-October.
According to the reports of smartphone shipment tracker company IDC, over 18 million phones were sold in this quarter compared to 37 million units in the year-ago period.
IDC stated, “The country remained under lockdown through the first half of the quarter. Vendors faced major supply chain disruptions at the beginning of the quarter. The shortage continued into the rest of the period as factories operated at partial capacity even after the lockdown was lifted,”
The share of the below-Rs 15,000 phase reached an excessive of 84% as a result of poor shopper sentiment. Even the share beneath Rs 7,500 noticed good demand as its contribution elevated to 29% within the second quarter in opposition to 20% in the identical interval of 12 months in the past.
IDC India analysis director Navkendar Singh stated the continuing supply chain challenges compelled among the manufacturers to go for direct imports to satisfy the pent-up demand after the lockdown, particularly in June.
The fall of the smartphone market was eventual. The pandemic and lockdown leading to lack of money among the middle-class people were the prime cause. The bans on Chinese apps and companies is causing problems to companies like MI, Realme Oppo, etc. Almost all the budget phones are produced by these companies and a huge chunk of the Indian population uses these devices.
The sales rise a bit by June due to the announcements of work from home and the announcement of schools and college lectures to be held online. However, purchases were mainly driven by availability rather than by choice.