Monday, May 17, 2021
Home India Smartphone Production in India Witnesses Substantial Decrease

Smartphone Production in India Witnesses Substantial Decrease

The negative impact from the supply chain side will last until the end of Q2 minimum

Smartphone players are unable to gauge the full impact of lockdowns and global recession and there is going to be a sharp contraction as consumers are in no mood to spend on buying new devices and rather focus on stocking essential items like groceries and other daily needs.

The smartphone production in India is already set to decrease by nearly 40 per cent amid nationwide lockdown as factories are shut and there are no online sales either. According to Counterpoint Research, they have looked at parallels from recent recessions to help guide their forecast.

“Our conclusion is that we expect to see a sharp contraction as consumers withhold making discretionary purchases during periods of maximum uncertainty. The result is an extension in the replacement cycle,” said Peter Richardson, Research Director, Counterpoint.

Please Follow NewsGram on Instagram To Get Latest Updates From Around The World!

“However, we expect that extension will be limited to no more than six months,” he added. There is a visible impact to new devices being launched in India as the components sourced from China are still impacted while factories resume operation slowly and cautiously in that country.

The negative impact from the supply chain side will last until the end of Q2 minimum. The bigger worry, however, is the disruption of the global supply-chain that is set to impact the manufacturing — from smartphones to consumer electronics.

“We further expect that the long run average market growth rate will not vary significantly – but the near term growth rates will reflect the slowdown and then rebound — a similar pattern to that seen in recent recessions but allowing for the different level of market maturity,” explained Richardson.

While smartphone manufacturing has picked up in India over the past few years, the country is still dependent on China to a large extent for supplies of components.

Smartphone
Smartphone players are unable to gauge the full impact of lockdowns and global recession and there is going to be a sharp contraction as consumers are in no mood to spend on buying new devices and rather focus on stocking essential items like groceries and other daily needs. Pixabay

The COVID-19 lockdown has also forced smartphone players to postpone new launches for an indefinite period as online retailers have prioritized their operations and services keeping the essential services in mind.

It makes sense for the original equipment manufacturers (OEMs) to defer new smartphone launches but, at the same time, support retailers who have been hit strongly, according to Tarun Pathak, Associate Director, Counterpoint Research.

ALSO READ: Know About the Health Benefits of Being a Vegan

“It has to be a collaborative effort from the government to original equipment manufacturers (OEMs) and other players in the ecosystem to support the partners involved,” Pathak told IANS. (IANS)

STAY CONNECTED

19,509FansLike
362FollowersFollow
1,773FollowersFollow

Most Popular

The Unsolved Mystery Of “The Bermuda Triangle”

By- Khushi Bisht The Bermuda Triangle, also known as the Devil's Triangle is a mysterious section of the North Atlantic Ocean that is surrounded by...

The World’s Most Expensive Spices

BY- JAYA CHOUDHARY Spices as a commodity may be trivial, but their value in the kitchen is immeasurable. It is difficult to go back to...

Ashtottaram 51: OṀ PRIYAMVAƊABHŨMYAI NAMAH

BY-Devakinanda Pasupuleti  OṀ PRIYAMVAƊABHŨMYAI NAMAH:  OṀ (AUM)-PRI-YAM-VA-DA-BHOO-MYAI—NA-MA-HA  ॐ प्रियम्वदभूम्यै नमः                                   (Priyam: Desired, pleasant, truthful, satyam, kindly; Vada: speaking) In Sanskrit, there are many meanings for the word priyam including...

Sita’s Chitwan: “Life In A Forest Teaches One To Be Patient, Passionate”

Award-winning children's author Vaishali Shroff belongs to a family of wildlife enthusiasts. While her husband and children look for interesting sightings and topographies to...

The Coming Of New Bipolarity

The Cold War that ended three decades ago, inevitably left behind a legacy, existing even today, of a divide between the US-led West and...

Low & Regular-Dose Aspirin Proven Safe, Effective

An unusual study that had thousands of heart disease patients enroll themselves and track their health online as they took low- or regular-strength aspirin...

No Scarcity Of Workers In U.S. Anytime Soon

On the surface, the surprise announcement Thursday from the U.S. Centers for Disease Control and Prevention that it would reverse mask mandates and limits...

Experts: Uncontrolled Diabetes Main Cause Of Black Fungus

Uncontrolled diabetes is emerging as a major factor in acquiring black fungus infection or mucormycosis, which is surfacing in Covid-19 patients after recovery and...

Recent Comments