NEW DELHI: Indian smartphone sale may decline to 127 million, down from a projected sales of 162 million, techARC said on Tuesday.
“This impact due to Covid-19 means a 21.6% less than the sales estimated at the beginning of the year 2020. In terms of actual decrease compared to 2019, it will be 12.5% (down from 2020 sales of 145 million),” techARC added.
The smartphone sales in India will be mostly driven by basic and mid-range smartphone segments (Rs 5,001 to Rs 25,000), accounting for over 92% of the total sales. Meanwhile, the entry-level segment will continue to witness a decline. The luxe segment (Rs 50,000 and above) will be the least affected smartphone segment as the propensity to spend will remain high.
However potential buyers are expected to buy smartphones from a segment lower than intended owing to the uncertainties around. “There will be some shift of demand from upper segments to lower ones due to this,” techARC said.
On the other hand, the top 5 OEMs have been quick to react and respond to changing market situations. The agility of smartphones will become their strength and will play an important role in their business continuity going forward.
Due to this reason, techARC expects a mild impact on the market share of the top 5 smartphone brands whereas, lower-ranking smartphones (6-10) will be impacted the most. Niche players are also expected to take a mild impact.
To sustain revenues, brands will have to diversify into emerging product categories such as ‘essential electronics’, ‘pandemic electronics’, ‘safety electronics’, etc. Source
“This impact due to Covid-19 means a 21.6% less than the sales estimated at the beginning of the year 2020. In terms of actual decrease compared to 2019, it will be 12.5% (down from 2020 sales of 145 million),” techARC added.
The smartphone sales in India will be mostly driven by basic and mid-range smartphone segments (Rs 5,001 to Rs 25,000), accounting for over 92% of the total sales. Meanwhile, the entry-level segment will continue to witness a decline. The luxe segment (Rs 50,000 and above) will be the least affected smartphone segment as the propensity to spend will remain high.
However potential buyers are expected to buy smartphones from a segment lower than intended owing to the uncertainties around. “There will be some shift of demand from upper segments to lower ones due to this,” techARC said.
On the other hand, the top 5 OEMs have been quick to react and respond to changing market situations. The agility of smartphones will become their strength and will play an important role in their business continuity going forward.
Due to this reason, techARC expects a mild impact on the market share of the top 5 smartphone brands whereas, lower-ranking smartphones (6-10) will be impacted the most. Niche players are also expected to take a mild impact.
To sustain revenues, brands will have to diversify into emerging product categories such as ‘essential electronics’, ‘pandemic electronics’, ‘safety electronics’, etc. Source
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