While most businesses are suffering huge losses during the pandemic, laptop, smartphone and tabs have recorded a huge increase in demand.

Man using a laptop and phoneImage for representation
Atom Business Monday, July 06, 2020 - 18:24

Ever since the complete lockdown has been lifted, a huge demand has been recorded for smartphones, laptops and tablets. After a slump in business during the lockdown, suddenly, the demand for electronic devices has brought in cheer for electronic companies.

Speaking to TNM, Navaneeda Giri, South India Zonal Manager, Acer India Pvt Ltd said, “With work from home and learn from home becoming the new normal, we are already witnessing a huge demand for tablets and laptops. With schools shifting to online classes, students compulsorily need laptops or tablets for their education. Corporates have been ordering laptops in thousands, to provide their employees the option to work from home. We are expecting huge sales this quarter.”

When asked about whether they are able to meet the sudden rise in demand, Giri said,“At the moment we are able to meet the increased demand. We noticed that most customers are looking for mid-budget laptops.”

Speaking about how the prices have probably shot up due to the increased demand, George Varghese, a parent, said, “As soon as the lockdown was lifted, I ordered two laptops online for my son and daughter. I got them for Rs 27,000 each. A week after I ordered them, the price shot up t o Rs 37,000. Probably the offers were taken off due to the increased demand. Now, the same product is unavailable online.” Keeping in mind the convenience and safety during the pandemic, like Varghese, several parents are using e-commerce websites to place orders for the same.

To find out more about the present purchasing pattern, TNM spoke to Balu Chowdary, Chairman and Managing Director, Big C, one of south India’s popular mobile retail chains. He said, “We had anticipated an increase in sales of tablets and smartphones. However, we are witnessing a shift in the purchasing pattern of customers. The average selling price was around Rs 15,000 earlier, but now it has dropped to Rs 13,000. The sale of handsets in the Rs 20,000 to 35,000 has gone down, while cheapter phones are selling more. This is also because most Non Banking Finance Companies (NBFC) have cut down financing. Earlier, NBFC contribution to business would be around 35%, now it has dropped to 12%.”  Today, Big C has 225 stores across three South Indian states.

Throwing some more light on sales of premium phones, Chowdary revealed, “Many parents are buying new phones and are giving their old phones to their kids for online classes. Most vendors are unable to meet the demand because of low production.”

Srinivas Rao, Samsung’s Channel Manager for Andhra Pradesh and Telangana felt the convenience of using a tablet is what had led to more sales. He explained,“Tablets are the best when it comes to mobility and convenience. Everyone, especially students, prefer tablets because of the ease of use. Earlier we had to follow up with clients regarding orders. Now customers are following up with us about the same. The demand has increased by at least 25-30%. Tablets are also cheaper than laptops and hence many customers are preferring to go for tablets for their children.”

Along with laptops, tablets and smartphones, sales of accessories like headphones, earphones, speakers etc have also considerably shot up because of online classes.

Read: 
71% consumers opting for home delivery to minimise exposure, for convenience: Survey

70% startups say business hit by COVID-19, 12% have shut down: FICCI

 

  

 

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