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Indian smartphone industry stares at $2 bn loss due to coronavirus lockdown

Indian smartphone industry stares at $2 bn loss due to coronavirus lockdown
April 03
13:59 2020

Smartphone industry in India could take a $2 billion hit on account of the coronavirus pandemic as shipments declined significantly in the months of March and April compared to the previous year, according to Counterpoint Research.

Noting that the effect of the pandemic on India was relatively mild until mid-March, Counterpoint Research said the outbreak is spreading pan-India and the country has been put under a lockdown.

This is expected to result in a decline of 3 per cent in smartphone shipment in 2020 to 153 million units compared to 158 million units last year, it said.

“We are estimating a year-on-year decline of 27 per cent in March shipments, and almost 60 per cent for April assuming lockdown will be until April 14. This translates into a revenue loss of about $2 billion for the industry till the lockdown period,” Counterpoint Research Associate Director Tarun Pathak told PTI.

Pathak further said that if the lockdown extends, the loss will be higher and could affect “the entire supply chain and the channels in terms of revenue, payments as well.”

Moreover, consumer demand is also expected to get an adverse impact as people focus on saving and therefore, limit discretionary purchases for some time, he noted.

The first quarter of the year had seen smartphone makers struggle on account of component supply being disrupted in China following the coronavirus outbreak. The outbreak, whose epicentre was in Wuhan, in China, has spread across the world and claimed thousands of lives.

Source: Business Standard

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