Smartphone Shipments Shrink By 48% In Q2 2020, Apple Least Affected: Canalys


Coronavirus and the nationwide lockdown have started showing its effects on the smartphone industry as the shipment fell by 48 percent in Q2 2020. This is the first time that the smartphone makers are dealing with this situation due to decreasing demand and halt in production as per Canalys.

Smartphone Shipments Shrink By 48% In Q2 2020: Canalys

According to tracker firm Canalys, initially, the local production has been stopped, and handsets makers like Xiaomi and Oppo imported smartphones to meet the demand.

"The fluidity of the lockdown situation across India has had a deep-rooted effect on vendors' go-to-market strategies. Xiaomi and Vivo have undertaken an O2O (offline-to-online) strategy to support their massive offline network. Online channels, too, while seeing a positive effect of the pandemic on market share, have seen sales decline considerably," said Canalys Analyst Madhumita Chaudhary.

The research firm Canalys has also highlighted that Apple is the only handset maker amongst all that has not been affected that much as its shipments fell by 20 percent only. It said Xiaomi and Vivo have adopted the O2O (offline-to-online) strategy to help their offline stores.

"Vendors are driving the message of 'Made in India' to consumers and are eager to position their brand as 'India-first.' Despite the sentiment, the effect on Xiaomi, Oppo, Vivo, and Realme are likely to be minimal, as alternatives by Samsung, Nokia, or even Apple are hardly price-competitive," Canalys Research Analyst Adwait Mardikar said.

Furthermore, the firm added that Reliance Jio is bringing 5G smartphones in the country. There are chances that Reliance Jio might deploy 5G networks in 2021. The firm also added that the people are against Chinese smartphone players, and their luck is not favouring them.

Besides, the centre government has launched Aatmanirbhar (self-sufficient) initiative to help domestic firms. In fact, smartphone manufacturers like Micromax, Lava, and Karbonn are already planning to launch smartphones in the country. The companies are bringing two smartphones under Rs. 10,000. But still, these companies have to face tough competition from brands Xiaomi, Realme, Vivo, Oppo, and OnePlus.

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