India's smartphone market started the second quarter of 2021 on a low note amidst the second wave of Covid-19 but quickly recovered towards the end of the quarter, seeing an 86 percent year-on-year growth to 34 million units at 30 June, according to a report from IDC. While 2021 is expected to see single-digit growth, the report authors expect the second half of 2021 to see a drop year-on-year, with lower demand, uncertainties around the third Covid wave, persistent supply constraints, and rising component prices along with intensifying inflationary rates.
Nevertheless, the market researchers claim a rebound in 2022 will be possible, with upgraders in the low-mid price segments, 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.
In the second quarter of 2021, India saw accelerated growth of the online channel, led by eTailers, resulting in a record share of 51 percent, with a 113 percent year-on-year growth. MediaTek-based smartphones continued to lead with a share of 64 percent in the sub-USD 200 segment, while Qualcomm dominated the space in the USD 200-500 segment with a 71 percent share.
India stood at fourth position, following PRC, USA, and Japan, in terms of 5G shipments of 5 million with the lowest ASP at USD 410. Though the government is yet to roll out the spectrum, IDC expects an inflow of more affordable 5G devices by end-2021 at under USD 200. Overall ASPs surged to a high of USD 184, growing by 15 percent year-on-year.
Top smartphone vendors in Q2
The report shows that Xiaomi topped India’s smartphone market with an 84 percent year-on-year growth. Poco, Xiaomi's sub-brand, emerged as the fastest-growing brand nationally. Xiaomi held a 40 percent online market share with almost 70 percent of its shipments in online channels. Also, Xiaomi surpassed Samsung for the third slot in the offline channels with an 18 percent market share.
Samsung ranked second, registering the lowest year-on-year growth amongst the top 10 vendors at 15 percent in the second quarter of 2021. The vendor faced severe supply shortages. Its offline channel remained muted with a 4 percent decline, but its online shipments grew by 46 percent year-on-year, accounting for 49 percent of its total shipments.
Vivo ranked third, with a 57 percent year-on-year growth, while realme surpassed Oppo for the fourth slot with shipment growth of 175 percent year-on-year in the second quarter of 2021. It also overtook Samsung for the second slot within the online space with a 19 percent share, offering affordable 4G/5G models. Amongst the top 5 vendors, realme had the highest 5G contribution and led the space with a 23 percent share in the quarter ended 30 June 2021.
The study also found that Oppo slipped to the fifth slot, but with shipment growth of 123 percent year-on-year in the second quarter of 2021. 17 percent of Oppo’s shipments were 5G, claiming third place in the 5G market after realme and OnePlus. It also surpassed Samsung for the second slot in offline channels at a 20 percent market share.
