A new report from IDC and Counterpoint Research, two well known analytics firms, has revealed that the Indian smartphone market is witnessing a slump. The reports suggest that the sales will fall by 13 to 15 percent due to the ongoing Coronavirus pandemic.
India is the world’s second largest smartphone market. Various Chinese OEMs and other major brands in the industry consider it a key market and fight for a better foothold in the region. However, due to the viral outbreak, the local government had to employ a strict and mandatory lockdown that even caused smartphone manufacturing plants to shut down as well. At the moment, there is an economic crisis with salary deductions being a common measure being taken in both the private and government organizations.
Editor’s Pick: Redmi 10X 5G is now available for purchase in China; price starts at 1,599 yuan ($224)
This translates to overall lower revenue being generated by working members of the family, and, by its extension, makes them less likely to purchase a new smartphone. Currently, various foreign smartphone vendors that have opened up manufacturing plants in the region have been facing difficulties in ramping up production to meet demands, making imports necessary. However, the customs duty and GST taxes of 12 to 18 percent have made certain smartphone pricing rise as a consequence.
The best example of this is Xiaomi raising the prices of certain budget Redmi smartphone twice in a single month. According to IDC, the Indian smartphone market may only sell 130 million handset units in 2020 (which is below its original projection of 140 million units), down from 158 million units from 2019. Similarly, Counterpoint Research also dropped its initial estimation down from 147 million units to just 137 million units being shipped this year.
UP NEXT: OPPO Ace2 EVA Edition Smartphone And Other Neon Genesis Evangelion-Themed Accessories Are Now Available On Giztop
(Via)
