Thanks to the recent coronavirus outbreak, the majority portion of the world is currently under lockdown. Lockdown seems to be the only effective measure to prevent the social gathering, which plays an important role in the coronavirus infection. However, on the flip side, such lockdown is drastically damaging the economics across the globe, especially developing countries like India.
The Lockdown in India and its Economic Impact on Smartphone Market
India is currently observing a 21 days lockdown throughout the nation. The fastest-growing economy in the world is going to face severe consequences of the lockdown in terms of economy.
India is the second-largest and only growing smartphone market in the world. Pankaj Mohindroo, the chairman of cellular and electronics Association of India, claimed that the industry is going to face around 15,000 crore loss, and they are in contact with the government to minimise the damage.
Even before the announcement of the nationwide lockdown, Xiaomi asked all its 30,000 Indian employees to choose the work from home option.
An expert revealed that relatively smaller smartphone companies are facing 6 to 7 crores of loss on any given day. On the other hand, the number is significantly larger for industry leaders.
Impact on the Global Industry
The smartphone industry in India is facing the impact of coronavirus as early as December, last year. As the country imports the majority of its smartphone components and Smartphones from Mainland China, the impact seems natural. However, India is not the only country to face such consequences. The report suggests that the entire industry is facing the heat of the outbreak, and the sales number in February dropped by around 40 million units, across the world. The February number is the biggest decrease in the history of the smartphone industry.