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.

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Canalys has released its report on India Smartphone Market for Q3 2021. According to the research firm, the shipments dropped by 5% YoY. However, Xiaomi continued to dominate the market. At the same time, the Chinese tech giant tried to increase its share in the premium segment.

Canalys says that vaccination played a key role in the increase of smartphone demand in India in the third quarter of 2021. But unfortunately, the shipments fell short of 5% compared to last year due to the shortage of components.

As the low-end models were in short supply, brands were forced to offer promotions on high-end models to lure in customers. Xiaomi pushed its Mi 11 series heavily to increase its share in the premium smartphone category in India. Apple also offered attractive deals on the iPhone 12 series ahead of the iPhone 13 series launch.

On the other hand, realme took a different approach. It focused more on affordable 5G handsets, and therefore, managed to ship around 1 million units of realme 8 5G. A whopping 70% of the brand’s shipment occurred online. Lastly, Transsion also tried to scale up its sales in the country.

Talking about rankings in terms of shipments, Xiaomi came first with a 24% market share (11.2 million units), followed by Samsung with a 19% share (9.1 million units). Then, vivo acquired third position with a 17% of the market (8.1 million units). It was closely followed by relame with a 16% market share (7.5 million units) and OPPO with a 13% share (6.2 million units).

As far as the whole market is concerned, the demand is said to persist during the upcoming Diwali festive season, in addition to the shortage of supplies. We will have to wait and see how the brands will face the situation.

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