India is the second largest cell phone manufacturing country after the mainland, Apple, Samsung, Xiaomi and other cell phone brands have set up factories there, but the epidemic in India is out of control, fearing that the impact of cell phone production capacity down to 60%, if the epidemic intensifies, mainland cell phone manufacturers will face the double challenge caused by supply chain tension and urban blockade.
IT Times reported that Yang Shucheng, secretary-general of the Association of Chinese Mobile Phone Enterprises in India, pointed out that the current production is still normal, but the capacity is a bit insufficient, only 60% of the usual. There are three reasons for the lack of capacity: first, the factory is directly affected by the epidemic and needs to strengthen anti-epidemic and protective measures, and some workers are unable to work; second, there is a lack of chips, especially for low- and mid-range cell phones or electronics manufacturing; third, China-India relations also affect the factory’s capacity, for example, some materials shipped from the mainland to India cannot be delivered.
“Noida is one of the important gathering places for land-based enterprises to invest in India, concentrating more than 100 mainland factories, including OPPO, vivo, Transn, Holidai, etc. have factories in Noida.” Yang Shucheng said, since the epidemic, some of these factories of land stem have returned home one after another, the current Chinese employees in India only 30% of the usual, there are still 50 managers from the end of 2019 has been holding on to their posts.
Yang Shucheng fears that if the epidemic intensifies, mainland cell phone manufacturers will have to face the double challenge caused by supply chain tensions and urban blockades.
Research firm Counterpoint predicts the epidemic will cause the boom in the Indian cell phone market to decline. As smartphone sales in New Delhi and Mumbai in India account for almost 25% of the entire market, the second wave of the new crown outbreak and the resulting restrictions that have emerged in these areas will likely reduce smartphone shipments in India by 10% to 15% from April to June, which is expected to be about 5 million units.
The biggest challenge, however, is not the factories but the supply chain. Despite the overall decline in shipments, the Indian market is still in the hands of mainland-made cell phone brands.
IDC report shows that the top five cell phone brands in the Indian smartphone market in 2020, four from mainland brands, including Xiaomi in India smartphone market share of 27%, ranking first; Samsung ranked second, accounting for 20%, followed by vivo accounted for 18%, realme accounted for 13% and OPPO accounted for 11%.
Recently, Manu Kumar Jain, global vice president of Xiaomi Group and head of Xiaomi India business, revealed on his personal social media platform that two employees of Xiaomi India passed away due to infection of new crown.
India’s new crown epidemic is out of control, and experts predict that the actual number of infections in India is three to five times more than the announced figure.
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