Smartphone Demand Might Increase After Lockdown: Canalys

Despite the fact that the whole country is under lockdown, research firm Canalys claims that the smartphone shipments have been increased during January- March quarter. The firm said that the shipment grew by 12 percent, during that period.

However, the research firm believes that the shipment is likely to drop in the second quarter of this year as handset vendors might face demand and supply issues in the coming days. "All eyes are glued to the TV sets in hopes of returning to normal. While parts of India emerge out of the lockdown and the government works out an exit strategy, worker availability, which depends heavily on opening state borders and allowing public transport, will be a key issue for vendors and ODMs," said Canalys Analyst Madhumita Chaudhary.

The firm also claims that the additional manpower in factories is expected to slow down, which means this will affect the production capacity in the manufacturing plants in the country. "Consumer demand, however, is likely to be more robust. Online channels are likely to emerge the winners as public fear of the virus deters consumers from buying offline," the research firm said.

Xiaomi Will Remain Market Leader In Smartphones

Meanwhile, the firm suggested that Xiaomi will remain the market leader, while others might perform average. It said that Xiaomi has invested a lot in production and supply chains. The firm also believes that Xiaomi has a different strategy for online and offline platforms, which will help the smartphone maker.

"The high sell-in this quarter was mainly due to planned stockpiles ahead of the high-profile Indian Premier League (IPL). However, the unplanned lockdown at the end of March has disrupted the vendor's plans. With IPL postponed, and much of its inventory in offline channels locked out, Vivo will struggle to see a quick sell-through when the lockdown lifts," she added.

The report comes at that time when the industry body ICEA said that 2.5 crore people in the country are suffering as devices need to be repaired. The most interesting part of these finding is that the shipment has increased in January and March quarter, despite the lockdown was announced.