India Smartphone Market 2021 Archives - Gizmochina

Indian Smartphone Market to see modest single digit annual growth in 2021: IDC

Sean — Fri, 12 Nov 2021 11:49:26 +0000

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.

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.”

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.

India’s smartphone market projected to reach a record 173 million shipments this year

Jed John Ikoba — Mon, 23 Aug 2021 11:26:07 +0000

The latest India Handset Quarterly Outlook by Counterpoint Research shows some impressive numbers for the market. The results point to an overall strong outlook for the Indian market, with 5G, feature phones conversion to smartphones, and affordability driving the massive growth.

The Indian smartphone market is in a resurgent mood after a slight dip in 2020, occasioned by the coronavirus pandemic. In the first half of the year, overall smartphone shipments rose to a record 100 million units, while the market share of 5G smartphones grew from 3% in 2020 to 19% by mid-2021. This tremendous growth has led Counterpoint Research to forecast that the market will get to the 173 million units mark by the year’s end.

India with a population of 1.39 billion, is a huge trove of untapped potentials. The 320 million feature phone market in the subcontinent is also up for grabs, as the $75 Jio Phone Next could be a game-changer to drive the migration from feature phone to smartphone by users. As India continues to expand its 5G infrastructure, the demand for affordable 5G smartphones has also been on the increase. Average prices of 5G phones have seen a 40% decline, and the current price of the cheapest 5G smartphone is INR 15,000 ($200). A recent survey also indicated that about 21% of consumers preferred 5G.

The Indian smartphone market has enjoyed a steady growth in the last five years, and the outlook for the next five years remains very bright. After China, the Indian smartphone market is the largest in the world.

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COVID 19 impact on India’s offline phone market could lead to 50,000 job losses

Jed John Ikoba — Fri, 07 May 2021 05:08:36 +0000

The global coronavirus pandemic that has prevailed since early 2020 has affected sales projections in India’s smartphone market. The market has reportedly taken a dip, especially offline stores and outlets, as consumers continue to get their favorite brand products via numerous online outlets.

Presently, there is a lull in the rate at which smartphone brands open physical retail outlets, as most deployments have been stalled because of the negative growth outlook. Recent sales data show that the Indian smartphone market had experienced a general decline from its performance previously. Still, retail outlets with no online presence bore the brunt of the drop. This has warranted a downward review of the current growth forecasts, according to industry analysts.

A report by Counterpoint Research says the initial market share of offline sales has been downgraded to 55% due to the unimpressive numbers that have been recorded in the past two quarters. It is expected that the projections for the year will be reviewed further downwards, as the pandemic still bites hard on India. Other experts have given a similar outlook for the year.

There had been a gradual shift from the traditional offline sales model to e-commerce, but it seems this was further accentuated by the COVID-19 pandemic that saw much of the world under a forced lockdown for much of 2020. However, the offline retail outlets remain an integral component of the marketing strategy of some established brands in India like Xiaomi, Vivo, and others who continue to expand their physical presence in India through retail outlets. While small and medium shops continue to grapple with survival in the present circumstances, several offline channels have closed shop. This is projected to result in the loss of an estimated 50,000 jobs.

We expect the sales outlook to improve as vaccine rollout improves and the infection curve starts flattening out.

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