Even though smartphone sales have been affected due to the second wave of COVID-19, handset makers are planning to advance the product launches. The smartphone firms are increasing their marketing activities in the Q3 quarter as they want to capture the demand before the festival season.
Additionally, it is expected that cases of COVID-19 might increase in October this year, which is why handset makers are planning to bring smartphones in advance along with discounts and offers to attract new buyers and clear the inventory offline and online channels.
Smartphone companies are still testing the impact of the second wave of the pandemic on the sector and on their sales.
“As of this month, we have started some promotions in areas which have started unlocking. Both offline and online channels are flush with inventory due to poor sales in the past two months. So clearing that out is the primary goal,” one executive at a leading brand was quoted by ET.
However, leading smartphone brands like Xiaomi, Samsung, Oppo, Vivo, and Realme did not comment on their plans.
“That said, this year, some power-packed launches will happen before Diwali coming from all major brands. But the industry is still skeptical about bringing any product priced above Rs. 30,000 because that segment is expected to see very little engagement,” he added.
Smartphone companies managed to record 53 million shipments in the third quarter of the last financial year. It was only 18 million in the second quarter; however, sources close to the development said this time gap will be less.
On the other hand, Prachir Singh, research analyst at Counterpoint Research said that the clear picture of the market will appear in July. He added that vaccination should be given at a fast pace, only then we can control the third wave of COVID-19. He further added that there will be uncertainty for brands in the next months.
You’ll be surprised to know that all smartphone makers have managed to increase their share in the second half of the last year. However, this time handset industry is expected to receive weak demand as consumers are not spending money huge amount on high-end handsets.
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Story first published: Friday, June 11, 2021, 17:38 [IST]