The IT sector of India saw a growth of 6.1% every year before Coronavirus has affected the tech industry. It was estimated to grow from US$177 billion in 2019 to US$350 billion by 2025. Now, the advent of Coronavirus has brought the whole industry to a Standstill.
There has been an estimated decline of 3-4 % revenue as the business of the software giants has been hampered due to the lockdown and Work from home Coronavirus situation. The meltdown of the industry is supposedly going to increase in the future, and, India being a significant contributor to IT services across the world might lose billions of dollars to the Pandemic.
It appears that the consequences the Pandemic has unleased on the global economy will affect the hardware industries more than ever. Still, slowly we see the effects of the meltdown to trickle down to the IT industries too.
The recession the Pandemic has brought with itself might lead India to lose over US$5 billion in just IT services exports itself.
How Coronavirus has affected the Smartphone Industry.
Coronavirus has also affected the smartphone industry. Due to lockdown in India, the smartphone industry has witnessed zero sales during April because of the shops being closed and the online sites delivering essentials only.
All smartphone brands had suspended manufacturing in their plants around March 20 onwards. Also, Realme ultimately suspended sales and production when the 21 days lockdown period was announced.
“As per the government directives, our Greater Noida facility in Uttar Pradesh suspended operations from March 21, along with sales coming to a halt. We also postponed our Narzo series launch event and a few Artificial Intelligence of Things (AIOT) products that were scheduled for April,” Madhav Sheth, Vice President, Realme and Chief Executive Officer, Realme India, told IANS.
In today’s age smartphones are necessary. Still, if the lockdown keeps on extending and we don’t get a solution for Coronavirus, then this is not good for the smartphone market. Food, clothing, and shelter will always be a priority, and the rate at which the economy is collapsing, sales of smartphones might see a massive decline in the coming quarters.
How IT and Smartphone industries are tackling the Coronavirus situation
Similarly, Coronavirus has affected the way people work now. The effects that the Pandemic has ushered upon us has resulted in adopting the new Work from home culture. Companies are now starting to realize the actual potential of the Work from home culture.
In the short run, the idea of working from home seems to be far sight, but in the long term, it’s going to prove beneficial for both the industries and the employees.
Facebook CEO Mark Zuckerberg announced that the company would embrace the Work from home culture by offering permanent Work from home option to many of its existing employees.
“Over the next 5–10 years, I think we could have 50% of our people working remotely, but we’re going to get there in a measured way. I think Facebook will be the most forward-leaning company on remote Work at our scale, and we’ve been working on a thoughtful and responsible plan to do this.”, wrote Zuckerberg on Facebook.
It is just a proposition, but if we can adapt to a 100% work from home culture, we can save loads on real estate and office costs. It also adds to the benefits of the comfort of working from one’s home and not having to travel daily. If the IT industry keeps following the new culture, this will help them to maximize their profits in these tough times.
Coronavirus has affected the mentality of the end consumers. At this stage, no one knows how long will the Pandemic last, and this has made everyone think a lot about their investments. Consumers now are inclined to buying essential items rather than smartphones or any other luxury item.
To tackle this situation, Smartphone companies are now starting manufacturing with limited employees just to keep the company going. They are trying to provide us with value deals that might convince buyers to go for a new device even in these tough times.
We can see how smartphones like the Realme 6 and OnePlus 8 has excellent specifications and also has been priced accordingly, especially in India, to appeal to the masses. All the smartphone industries can do now is to price their phones sensitively and try to appeal to consumers to buy their products.
But, until the Pandemic comes under control and people go back to their normal livelihoods, the idea of a common man to buy a new smartphone seems to be a far fetched idea.