Online channels, led by eTailers, witnessed an accelerated growth with a record share of 51 per cent with 113 per cent YoY growth
India’s smartphone market recovered towards the end of the April-June quarter witnessing 86 per cent year-over-year (YoY) growth to reach 34 million units despite starting the quarter on a low note amidst the second wave of COVID-19, as per a report by IDC.
However, while 2021 is expected to see single-digit growth, the second half of 2021 is likely to drop in comparison to the same period last year, with lower demand, uncertainties around the third wave, persistent supply constraints, and rising component prices along with intensifying inflationary rates, said Navkendar Singh, Research Director, Client Devices & IPDS, IDC India.
“Nevertheless, a rebound in 2022 will be possible with upgraders in the low-mid price segments, the supply-led push of 5G devices, feature phone migration with new offerings expected in upcoming months (as announced by Reliance Jio), and better supplies to market,” Singh added.
Among the key market trend of the quarter, online channels, led by eTailers, witnessed an accelerated growth with a record share of 51 per cent with 113 per cent YoY growth. On the flip side, the offline channel was impacted by weekend curfews in many areas and partially opened markets (with odd/even schemes) through May and mid-June.
MediaTek-based smartphones continued to lead with a share of 64 per cent in sub-US$200, while Qualcomm dominated the space in the US$200-500 segment with a 71 per cent share.
India stood at fourth position, following PRC, USA, and Japan, in terms of 5G shipments of 5 million with the lowest ASP at US$410.
The report added that while the government is yet to roll out the spectrum, an inflow of more affordable 5G devices by end-2021 at sub-US$200 is estimated.
“Though there were aggressively priced 5G model launches in 2Q21, most shipments were 4G. Nevertheless, it is still months away from 5G to become mainstream, underlining the importance of spectrum availability, clear use cases, and ensuring a cohesive future-ready infrastructure led by telcos,” says Upasana Joshi, Associate Research Manager, Client Devices, IDC India.
The market was led by Xiaomi with an 84 per cent YoY growth. Xiaomi commanded a 40% online market share with almost 70% of its shipments in online channels. Samsung was second, registering the lowest YoY growth amongst the top 10 vendors at 15% in 2Q21. vivo came at the third position, while realme surpassed OPPO for the fourth slot and OPPO slipped to the fifth slot.
