Yes, it’s official now. According to the industry analysts, the smartphone market in India is finally feeling the pinch of the coronavirus. The sales are falling, the fresh sourcing of the phone components isn’t happening and the prices are ready to rise. It’s a well-known fact that the world is dependent on the China market for smartphone components like displays, connectors, memory chips and touch panels other than phones. So, the shutdown of the factories in China are causing an after effect here in India now. What all can be the impact.

Let’s Check Out –

  • Feature phone market is expected to hit big-time as the key component of the phone PCB (printed circuit board) is imported from China.
  • Indian manufacturers use 85% of the smartphone components sourced from China but since sourcing can’t happen now, a shortage of devices is expected soon as the local production would halt.
  • The stock cycles filled in wake of the Chinese holiday season (Jan-Feb) are about to end soon and the new stock is affected because of Supply chain disruptions.
  • The limited availability of the phones and the phone components because of the production units shutting down could lead to 5-7 % price rise in the smartphone segment and about 10-12 % in the feature phone segment. Example being Redmi 8 which has already seen a recent price rise.  
  • New phone launches to get postponed by a month or so and those which get launched would have limited availability.
  • An expected 10-12 % fall in the smartphone sales in Q1 2020
  • Smartphone models which are fully imported from China like iPhone 11 and iPhone 11 pro to get hit the most as the stocks are running out and there is no surety on the new stocks filling in soon.
  • One of the most important event Mobile World Congress 2020 where the biggest of the biggest brands unveil their latest launches called off.
  • Premium smartphones to remain unaffected in India because of the limited demand.
  • Finally, efforts being made to diversify investments across geographies and not restrict to one country to mitigate risk now on.

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