Technology

India’s smartphone shipment sees sharp drop as pandemic hits supply chain

India smartphone shipments drop in the second quarter   | Photo Credit: International Data Corporation

India’s smartphone shipments witnessed a sharp drop amid pandemic-forced supply chain disruptions, market intelligence firm International Data Corporation said.

Smartphone shipments fell around 51% to 18.2 million units in the second quarter from the same period in the previous year.

Vendors continued to face supply chain disruptions and shortage as factories operated at partial capacity even after the lockdown was lifted, IDC said in a report.

China-based vendors suffered the most after components and parts remained at the ports waiting to be cleared.

Oppo’s shipments declined more than 50% to 1.76 million units, the biggest drop among the top five smartphone brands in the country. It had severe stock issues due to a COVID19-forced shutdown of its factory.

Xiaomi and Samsung, the top two brands in mobile shipments also dropped around 49% from the same period a year ago.

Xiaomi, the Chinese smartphone maker lead the total shipments with 5.4 million units while Samsung, the Korean brand shipped 4.8 million units taking the second spot.

Xiaomi models, the Redmi Note 8A Dual, Note 8, Note 9 Pro, Redmi 8 and Samsung’s Galaxy M21 were the nation’s top 5 shipped models in 2Q20.

Pent-up demand from the lockdown period increased the sales in June but added to the cost.

“The ongoing supply chain challenges forced the brands to go for direct imports to meet the pent-up demand post-lockdown, especially in June, adding extra cost pressures,” said Navkendar Singh, Research Director, Client Devices & IPDS, IDC India.

Even offline channel partners’ new initiatives like reaching out to consumers through social media, doorstep demos and deliveries, accepting contactless payments, could not stop its steep annual decline of around 57%, said Upasana Joshi, Associate Research Manager, Client devices, IDC India.

Online channel also slid around 40%.

Feature phone shipments dropped around 70% to 10 million units, contributing only 35% to the overall mobile market, the lowest ever for this segment.

IDC expects the market to show signs of recovery in the second half of the year, as we approach the festival season. Brand marketing and channel initiatives during the festivals will play a key role as brands and their partners will be looking for pockets of growth in these crucial next few months, Navkendar said.

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Printable version | Feb 26, 2021 7:33:41 AM | https://www.thehindu.com/sci-tech/technology/indias-smartphone-shipment-sees-sharp-drop-as-pandemic-hits-supply-chain/article32303541.ece

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