According to the latest report by Canalys, the Indian smartphone market shrinks by nearly 50% in Q2 2020. Due to COVID-19, the country faced an unprecedented shutdown of its economy of 17.3 million units by mid-May.
Smartphone vendors faced a lot of problems by dealing with both short supply and reduced demand due to a complete decline in production, as online and offline retailers were barred from selling smartphones.
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In Q2 2020, Xiaomi was on the top in the Indian market by capturing 31% of the total market share and shipping 5.3 million smartphone units. By shipping 3.7 million units, Vivo comes in the second position and increased its market share to 21.3% from 19.9% in Q1 2020.
Due to this pandemic situation, India has a profound impact on sellers’ market strategies. Xiaomi and Vivo have launched an O2O (offline-to-online) strategy to support their massive offline network. Online channels have also seen a significant decline in sales, given the positive impact of the epidemic on market share.
Apple was the least impacted among the top-10 vendors as shipments fell just 20% year-on-year to just over 250,000 in Q2 2020. The vendor has recently announced its plans to diversify its supply chain and is pushing its major partners Foxconn and Wistron to increase its investments in India.
“The transition to 5G is the next big opportunity, and Jio’s announcement of readiness to deploy 5G, as soon as spectrum is made available, has provided a ray of hope to most vendors who have been beaten by the current pandemic,” added Chaudhary.
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