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Coronavirus pandemic
TechTech Trends

Xiaomi, Oppo, Vivo, Realme face Indian dilemma as Covid-19 resurgence sinks demand

  • Before the latest round of lockdowns started in April, India’s smartphone market had been in the midst of a recovery from last year
  • The smartphone brands’ manufacturing in the country is also threatened as more virulent viral strains could prolong the crisis

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A purchaser uses the first Mi Express Kiosk, a Xiaomi vending machine, in Bangalore, India, on May 17, 2019. Xiaomi is India’s top smartphone maker, but sales of its handsets and those of other Chinese brands are threatened by new lockdowns amid surging Covid-19 cases in the country. Photo: Xinhua
Masha Borakin Hong KongandCelia Chenin Shenzhen

India’s recent surge in Covid-19 infections, with daily infections at record highs, has turned into bad news for Chinese smartphone makers Xiaomi, Realme, Oppo and Vivo, all of which have been expanding in the country in recent years.

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After being hit by lockdowns last year, India’s smartphone market had been recovering until the recent resurgence of the virus. In mid-April, “things took a U-turn” as different parts of the country once again started locking down, according to Kiranjeet Kaur, a senior research manager at IDC.

“People are not venturing outside their home unless they absolutely need to,” Kaur said. “[Online retailers] are only providing essentials, and smartphones are not considered an essential.”

Daily new infections have topped 300,000 in India for the past two weeks, with more virulent strains of the virus threatening to prolong the crisis. The resulting lockdowns have weakened consumer demand, which could push smartphone shipments down 25 per cent in the second quarter, according to an analysis from Bloomberg Intelligence published on Wednesday.

That would mean 9 million fewer handsets shipped in the country than the original 28 million forecast by market intelligence firm IDC.

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A health worker wearing personal protective equipment carries a patient suffering from Covid-19 outside the casualty ward at Guru Teg Bahadur hospital, in New Delhi, India, on April 24. Photo: Reuters
A health worker wearing personal protective equipment carries a patient suffering from Covid-19 outside the casualty ward at Guru Teg Bahadur hospital, in New Delhi, India, on April 24. Photo: Reuters

India has been crucial for Chinese smartphone makers looking for growth amid market saturation back home. Their devices have proven popular for their affordability, and they could bear the brunt of declining sales.

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