Smartphone sales up amid lockdown

When all the major industries across the globe are dealing with the devastating effects of coronavirus, Bangladesh's mobile handset industry has at least something to cheer about as the demand for smartphones has increased here – even in the Covid-19 pandemic situation. 

While staying home during the lockdown period, people’s dependence on smartphones has seen a rise compared to feature phones, leading to a surge in demand for the multi-purpose mobile computing device, said the industry insiders.

Moreover, people’s habit has changed to a significant extent during the lockdown – students are taking part in online classes and exams, while job holders are working from home online, said the insiders. In addition, dependence on the Internet has increased for shopping, news consumption, meetings, bill payment, financial transactions, and so forth.    

Therefore, the sale of smartphones has soared a bit in comparison with that of feature phones; earlier, around 25 out of per 100 people would use smartphones – the figure has increased to around 30 now due to the necessity created by the Covid-19 pandemic, said the industry people. 

Though overall sales of mobile phone sets have not met the expected target in May, the volume has increased by 40 percent compared to the sales in March and April, they added. 

Shyamol Saha, Chief Operating Officer at Transsion Bangladesh Limited, told The Business Post: “As only half of our workforce is working in this pandemic situation, our production has dropped by around 35 percent.”

“Therefore, we cannot supply the product as per the market demand.” 

There had been a trend among people to buy new gadgets during Eid, but this has been absent this time as many people were struggling to lead a modest life in the pandemic situation, he said.

Therefore, the sales target for May (when Eid is observed this year) could not be fulfilled, he said, adding that people were now busy meeting their daily essentials instead of spending for fancy items.

On condition of anonymity, an official of the electronic brand Samsung told The Business Post that the sale of smartphones accounts for the largest share of the total phone sales in May, and that the sale in May has seen a rise compared to that in March-April.

“But if you compare it with Eid sales of previous times, the volume is still far lower,” he said.   

He said their factory has been reopened following government-prescribed health guidelines. Since all the workers are yet to join the work, the company hasn’t been able to start production in full swing, he added. 

People are placing orders for phones on Samsung’s online shop, he said, adding that distributors are also selling phones through their respective online platforms.  

Rezwanul Haque, a former general secretary of the Bangladesh Mobile Phone Importers Association, said the sale of phone sets usually rises during festivals like Pahela Boishakh and Eids.

“But this year, sales dropped to a greater extent during these two festivals due to Covid-19 pandemic. In April, phone sales saw a decline of 80 percent. However, the sales bounced back a bit in May,” he said.  

In comparison with feature phones, the demand for smartphones has increased these days as dependence on Internet is increasing in this pandemic situation, he observed.

He, however, said the country’s mobile handset industry might see an overall decline in sales by 30-35 percent this year. 

As the big shopping malls are kept shut to stop the spread of coronavirus, people are buying mobile phones from different online shops. E-commerce based marketplaces like Daraz, Evaly, and PriyoShop are delivering mobile devices and gadgets to the doorsteps of consumers.    

Markets at upazila levels and small shops in adjoining areas are comparatively selling more phone sets, said the businessmen.

Asifur Rahman Khan, head of sales of local electronic giant Walton, told The Business Post that the sale of smartphones did not drop in this pandemic to the extent feature phones did.  

But due to lockdown, overall sales dropped by 60-70 percent in comparison with other times; but compared to March-April, the sales have risen in May, he added. 

Walton has been selling mobile phone devices along with other electronic products on its own Walton e-Plaza, he said.

During the lockdown, they put emphasis on the sales of mobile phone sets taking into account people’s demand for the device, he added.