indica news service
There was a drop in the smartphone market in India and it started long before the coronavirus epidemic. The decline in the smartphone market is expected to be deep and last longer than in China, according to a new report.
The smartphone market in China suffered a severe blow in January and February, but was already recovering before the end of March, as supply chains and retail activity returned to normal.
According to Counterpoint Research, the smartphone market will decline in India and will worsen in the second half.
Peter Richardson, research director at Counterpoint said:
“It may be as deep as China’s brutal slowdown but will likely last longer. Unlike China, where at least part of the slowdown has been supply-driven, the rest of the world’s contraction is more caused by consumers refusing alternative activities until they are more comfortable with the new economic realities of their situation. ”
The production of smartphones in India should decrease by almost 30% for the month of March in a context of foreclosure, the manufacturing units of smartphones are now closed nationwide.
Assuming the blockages ease in a few weeks, the recovery should be strong, he said, although we can expect some consumers to change their spending habits.
The world is officially in a global recession, as the International Monetary Fund (IMF) has declared. According to IMF chief Kristalina Georgieva, global growth will become strongly negative in 2020, and more than 170 countries will experience negative growth in per capita income this year.
However, the impacts are likely to be felt differently between developed and developing countries.
“In India, the government acted very quickly to lock down the country. But in doing so, it seemed to overlook the millions of migrant and casual workers who constitute a significant percentage of the workforce. Many found themselves not only unemployed, but also homeless – more or less overnight, “said Richardson.
The governments of emerging economies are not strong enough to support their populations or their businesses during long closings. And worse, capital is leaking to safe places, which means almost exclusively the US dollar.
“Businesses may be able to reduce the size of offices because they realize that at least one-third of employees can work effectively from home almost continuously,” said Richardson.