POCO readies operations to meet pent-up demand after lockdown

POCO, which was spun off from Xioami as a separate entity, is focussing on strengthening various parts of its business, including R&D and testing, as it gears up to tap into the “pent-up demand” for smartphones after the lockdown ends.

POCO, which had launched ”X2” in February, captured a spot among the top five brands in the Rs 15,000-20,000 price segment during January-March quarter.

“We are happy with the progress we have made in a short span of time. The initial numbers are strong. We had to halt sales because of the lockdown, we will abide by the laws, and once the lockdown ends, we will be back in full force,” POCO India General Manager C Manmohan said.

He added that the company is focussed on preparing its team and strengthening operations, including areas like research and development (R&D) and testing.

“We anticipate a pent up demand after the lockdown ends. After grocery, smartphones are an important item that people require, whether it is for work, study or entertainment,” he said adding that the supply is expected to also ramp up in phases after lockdown gets lifted across various parts of the country.

According to Counterpoint Research, demand is expected to shift to the second part of the year and people may hold-off purchasing until the festive season.

Smartphone shipment in India is expected to decline by 10 per cent in 2020 due to the coronavirus pandemic, even though the January-March quarter had seen shipment growing at modest 4 per cent with over 31 million units.

The government has imposed a nationwide lockdown to contain the spread of coronavirus pandemic that has claimed thousands of lives globally.

The lockdown, which is slated to be lifted on May 3, has led to factories and retail stores remaining closed, thus hitting smartphone sales. With only essential items like grocery and health and pharmaceutical products being allowed to be sold online, phone companies are staring at multi-billion dollar hit which will increase if the lockdown period is extended. India is the world”s second largest smartphone market after China.

The home ministry had allowed operation of IT hardware, manufacturing and other industrial establishments with access control in special economic zones and export-oriented units in industrial estates and townships from April 20 with certain restrictions. However, manufacturing units in several states remain shut as state governments have not eased the lockdown.

―Outlook India