As the country grapples with the second – and heavier – wave of Covid-19, the Indian smartphone market is also affected, claims the latest report from IDC.
“While the vaccine roll-out program generated positive sentiments earlier in the year, the start of the second wave of COVID-19 infections resulted in subdued consumer demand towards the end of the quarter,” IDC said in the report.
However, the market research company does not assume that the effects will be as severe as in 2020. “The April-June quarter is expected to be faced with growth challenges under the weight of the second wave of infections. However, the high shipments from the first quarter should be enough to meet immediate demand, ”said Navkendar Singh, Research Director, Client Devices & IPDS, IDC India.
He attributed this to the fact that factories are now operational and have limited restrictions on logistics / transportation. Finally, there are state-level lockdowns instead of a nationwide lockdown.
Despite the current high level of uncertainty, IDC expects consumer sentiment to recover in the second half of 2021, resulting in annual single-digit growth. However, the degree of growth is expected to be limited due to lower discretionary expenditures, delivery bottlenecks and expected price increases for components in the coming quarters.