Covid-19: Smartphone shipments likely to fall in 2020 for 1st time ever: Research agencies

NEW DELHI: Market research agencies have slashed their 2020 smartphone shipment outlook to show a first ever decline – of 3-4% on year, from an expected 6-8% rise – with demand likely to plunge further in April and stay low for around two quarters leading to a roughly $2 billion revenue loss amid the Covid-19 outbreak.

For 2020, while Counterpoint Research predicts a 3% on year fall in shipments, Canalys expects a 4.2% decline, as consumers focus on non-essential purchases and conserve cash as the economy takes a further hit due to the fallout of the Covid-19 lockdown. Analysts had earlier expected a 5-8% rise in shipments in 2020.

“We estimate that the Indian smartphone market will experience a decline of 3% year-on-year to reach 153 million units in 2020, compared to 158 million units in 2019,” Tarun Pathak, associate director at Counterpoint Research, told ET.