India is currently under a 21-day Corona lockdown starting from 25 March 2020. The Country’s economy is badly hit due to this. Manufacturers are facing real problems. Because everything is delayed or postponed. The smartphone industry is about to face losses worth 15,000 crores. Coronavirus has delayed smartphone production all around the country. Buying phones are definitely not mandatory for the public in times of such crisis. Phone manufacturers are in trouble too. Production is under break because the transport of non-essential cargo has come to a halt.
Why Smartphone industry is facing losses?
India Cellular and Electronics Association chairman, Pankaj Mohindroo, says “the members are approaching the government to help mitigate losses.” Xiaomi is India’s leading smartphone market. It says 30,000 staff to work from home even before the 21-day lockdown. An executive of Xiaomi India claims smaller companies in the sector are facing losses of Rs 5-6 crore a day. The figure is even higher for bigger companies.
These businesses normally suffer due to a shortage of supply of products. Now there are issues in a shipment of ready products.“ There is no revenue collection now for companies that sell through retail stores. Companies need to bear fixed costs without regular cash intake from the industry.
268 Indian companies actively work in the mobile manufacturing industry. All of them are in losses now. The government needs to take active steps in order to strengthen the country’s economy. ‘Make in India’ movement marked the uprise of smartphone manufacturing in our country. Now the entire movement is in danger. Coronavirus has shaken the entire smartphone industry.
But we, the citizens of India should not lose hope. India will improve the GDP again. The smartphone industry will turn in profits. It will take time, but will definitely happen.