COVID-19 would cause a dip in the Indian Smartphone Manufacturing!

Due to the COVID-19 breakout, the whole world is at a halt. Economies have crashed; there is a lack of medical facilities and what not! The virus did not spare the smartphone industry as well. Due to the lockdown, the demand for smartphones has decreased significantly. Even if someone wants to purchase a new smartphone, the following are the factors that would not let that happen:

· The global shutdown of manufacturing: various leading manufacturers have stopped production and closed the factories due to the spread of the virus.

· Countries have temporarily stopped the import of anything that is manufactured globally.

What is going around?

Amidst the entire ruckus, the pandemic has an impact on the Indian Smartphone market as well. The country is going through a lockdown. People are sitting at their places, working from home. E-commerce companies are also focusing on providing essential items. The preventive measures are strictly not in favor of international trade, and hence economies around the globe are dipping, including that of India. Smartphone manufacturing has been one of the fastest-growing trade aspects for the country, but due to the global shutdown, the demand for smartphones will decrease.

Supply and demand, they are always inter-connected

The decreased demand would lead to a decrease in production. Moreover, experts say that the contribution our country had in global smartphone production is going to fall. All the leading companies did start manufacturing their devices in the country, owing to the benefits of the “Make In India” campaign. However, as it appears to be, manufacturing facilities rely heavily on Chinese suppliers for individual parts that make up a device. Being the global hotspot of the virus, China has closed all its factories and limited international trade.

Indian production topped at around 300 million units during 2019-2020. That is 19% of the total smartphones produced that year. Also, at the starting of this year, a global hike owing to a shortage of devices caused the demand to fall a bit. The Indian market also suffered a price hike, owing to the increase in GST on smartphones. All these situations together are pointing at the drop that is going to be witnessed in the coming future.