The International Data Corporation (IDC) has revised its outlook for the Indian smartphone market downward. Further, Counterpoint Research has also done the same. As per their estimates, sales will decline by 13-15 per cent due to Covid-19, making it the first year of decline ever.
IDC has revised its estimates for smartphone market in India to 130 million handsets from earlier 140 million. Counterpoint adjusted its outlook pegging the industry at 137 million from earlier outlook of 142 million.
As per the market researchers, this is going to result from the recent spate of job and salary cuts whereby consumers will postpone purchases, companies will be unable to ramp up production impacting supply of models, and the recent increase in goods and services tax (GST) on smartphones from 12 per cent-18 per cent will making handset models pricier.
In case of feature phones, the decline in sales is estimated to be a steep 42 per cent from 130 million handsets sold last year to around 75 million with income of this set of consumers badly hit, as per IDC. Further, it added that the sub-Rs 10,000 segment will take a hit, while Rs 10,000-25,000 segment may still sell but will not be able to make-up for the lost ground. The current pent-up demand will taper-off by June 2020.