The extended lockdown in India has started having repercussions on the economy across different sectors and it has now resulted in zero shipments for the smartphone players in India in April as all the factories are shut and the stagnation will continue for two to four weeks time when the manufacturing units begin normal operations.
In April and even this month, factories are closed, all the retail shops are shut down and even e-commerce platforms are delivering groceries and other essential items.
“We see zero activity on smartphone shipments part in April and lockdown now entering May amid uncertainties, the Q2 2020 is going to be really challenging for the smartphone makers in the country,” Tarun Pathak, Associate Director, Counterpoint Research, was as quoted by news agency IANS.
“We have been hearing some absolute essential sales happened behind the scenes during the lockdown but yes, those will be in hundreds as against potential 11-12 million smartphone sales which happen in a normal month,” Pathak further added.
All the well-known brands — from Samsung to Xiaomi to Realme – have all suspended manufacturing/assembling at their respective plants in India.
“As per the government directives, our Greater Noida facility in Uttar Pradesh suspended operations from March 21, along with sales coming to a halt. We also postponed our Narzo series launch event and a few Artificial Intelligence of Things (AIOT) products that were scheduled for April,” Madhav Sheth who is the Vice President of Realme and Chief Executive Office, Realme India, told IANS.
“The bigger uncertainty comes on the demand side. If the nation’s economy and people’s income got hampered, then the smartphone demand in 2020 may not be optimistic. We will need to evaluate further how the economy recovers post the market reopens,” he further added.