Due to pandemic, smartphone sales to fall 15 per cent in 2020
- Market researchers International Data Corporation (IDC) has revised its outlook for the Indian smartphone market sales for 2020.
- In its revised estimates, IDC said that the Indian smartphone market would decline by 13-15 pc due to ongoing Covid-19 pandemic.
- It is the first time that Indian smartphone market will see any decline in sales.
- According to IDC, this is going to be due to recent spate of job and salary cuts whereby consumers will postpone purchases, companies unable to ramp up production impacting the supply of models and the recent increase in GST on smartphones from 12-18% making models pricier.
- IDC has now projected the smartphone market in India could hit as low as 130 million handsets as compared to an earlier estimate of 140 million. Last year, India sold 154-158 million smartphones.
- In the case of feature phones, the decline in sales is estimated to be a steep 42 per cent from 130 million handsets sold last year to around 75 million with the income of this set of consumers badly hit.
- IDC India research director Navkendar Singh said, “the situation is very volatile and a pessimistic view has been taken due to extended lockdowns, plants not able to operate whereby there are supply issues and consumers are 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 also 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”, Mr Singh said.
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