A new report has just revealed that the smartphone market in India is expected to see modest annual growth this year. In 2021, the market is expected to see only single digit rise.

India

According to IDC, the smartphone market in India saw a 12 percent year on year decline in the third quarter of this year. During this quarter, only 48 million units were shipped, despite seeing four consecutive quarters of growth. Although, this decline can be attributed to factors like the ongoing component shortages along with an unusually high third quarter performance last year. But comparing Q3 2021 to Q3 2019, we can see that the market saw a 3 percent growth as various channels also stocked up for the festive season despite the semiconductor shortage.

As per IDC Research Director Navkendar Singh, “The first nine months of the year (Jan-Sep’21) already shipped 120 million units, with 1H21 clocking 42% YoY growth. Due to supply challenges, 4Q21 is expected to see a decline, resulting in annual shipments below 160 million in 2021. The first half of 2022 will remain challenging, with some easing out expected in the latter half of 2022. Vendors/channels will keep an eye on the over stocking situation in case demand stays limited due to the price hikes by the suppliers and vendors.”

India

The report further added that online channels saw a record high 52 percent share in overall smartphone sales, especially during the online promotional offers from companies like Amazon and Flipkart. This continued on till Diwali, which is one of the major festivals in the country. Meanwhile, offline channels declined by 18 percent YoY, with IDC expecting online channels to overtake offline shipments in 2021. As of right now, India is the third largest 5G smartphone market due to a growing dependency on smartphones triggered by the remote work and education has lead to a rise in demand for high quality hardware.

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