The ongoing rise in Covid-19 infections does not bode effectively for the domestic smartphone industry as analysts count on the disruptions triggered could dampen customer sentiment, which in turn could lead to subdued shipments for the duration of April-June.
According to IDC India, whilst the vaccine rollout at the get started of 2021 instilled positive sentiment, the second wave of infections towards the finish of March resulted in subdued customer demand. Thus, the inventory cycle which had shrunk earlier in H2 2020 began to get longer due to the fact mid-Q1 2021.
IDC India investigation director (client devices & IPDS) Navkendar Singh mentioned, “April-June quarter is expected to face growth challenges under the weight of the second wave of infections. However, the high shipments from first quarter should be able to suffice for the immediate demand.”
However, the influence is anticipated to be much less pronounced compared to last year, with factories becoming operational today and only restricted restrictions on logistics/ transportation and state-level lockdowns alternatively of a nationwide lockdown, he mentioned.
Singh, having said that mentioned, “The recovery in 2021 might not be as smooth as expected earlier, with uncertainty around the lasting impact of the second wave and a possible third wave in next few months.”
IDC expects a rebound in customer sentiment in the second half of 2021, resulting in a single-digit development annually. However, the degree of development will be restricted due to lowered discretionary spending, provide constraints, and anticipated cost hikes in elements in upcoming quarters, he mentioned.
In the January-March 2021 quarter, the Indian smartphone industry reported a wholesome 18% year-on-year development totalling 38 million units, but declined by 14% from a powerful Q4 2020.
During Q1 2021, practically 7% of all round shipments had been 5G, major to a 3% year-on-year raise in typical promoting cost to $176 (about Rs 12,000). The premium segment ($500+), grew 143% year on year, with 71% of these based on 5G. Apple, Samsung and OnePlus continued to dominate in that space. The iPhone 11 and 12 collectively accounted for 28% of shipments, followed by the debut of Galaxy S21 series and the OnePlus 9 series.
Feature phone shipments declined by 8% year on year, regardless of Reliance Jio launching its new 4G device bundled with telco provides. However, the 2G segment witnessed 3% development driven by iTel and Lava, IDC India mentioned.