India’s smartphone shipments fell by 5 percent Q-o-Q to stand at 37 million units during April-June mainly due to lower consumer demand amid various challenging macroeconomic conditions, according to a Counterpoint Reserach report.
However, the shipments grew by 9 percent Y-o-Y during the said quarter, according to its latest research report. The Y-o-Y growth was primarily driven by a lower base in Q2 2021 due to the second COVID-19 wave.
Commenting on the market dynamics, Senior Research Analyst Prachir Singh said, “We saw the consumer demand declining QoQ during the quarter, especially in May and June. Consumers are preferring to repair their device or buy a refurbished one than make a new purchase. This trend is more visible in the entry and budget segments. Due to this decline in demand, almost all the brands are facing inventory issues.”
At the end of June, India’s smartphone market was sitting on more than 10 weeks of inventory, more than double the normal inventory size. Brands were seen aggressively promoting offers to clear this inventory and prepare for the festive season, Singh said.
On the competitive landscape and brand strategies, Research Analyst Shilpi Jain said, “India’s smartphone user base crossed the 600-million mark during this quarter. Also, the 5G smartphone penetration continued to increase. The 5G smartphone shipment share reached 29 percent of overall shipments in Q2 2022, which was the highest ever. The 5G auction and commercial availability will accelerate 5G smartphone adoption among users.”
“The smartphone retail ASP (average selling price) is also witnessing a growth trend. It grew 10 percent YoY in Q2 2022 driven by an increasing share of the higher price segments. The >INR 20,000 price band’s share reached the highest ever in Q2 2022, crossing the 22 percent mark. The growth in upper and premium segments is primarily due to the availability of financing schemes aimed at increasing device affordability,” she said.
India’s mobile handset market grew 6 percent YoY but fell 9 percent QoQ in Q2 2022. The feature phone market registered a decline of 17 percent QoQ primarily due to the decline in consumer demand. itel led India’s feature phone market in Q2 2022 with a 25 percent share. itel has been the top feature phone brand for 10 consecutive quarters, it said.
Xiaomi maintained its lead in India’s smartphone market in Q2 2022, though it declined 26 percent YoY. Xiaomi faced multiple issues like component shortages, which persisted throughout Q2, inflation and increasing competition in the entry-level segment.
However, revamping the budget portfolio with the Redmi 10 series, gaining mindshare in the mid and premium segments and multiple sales throughout the quarter helped Xiaomi maintain its top position. It also captured the third position in 5G smartphone shipments.
Samsung held the second spot in Q2 2022 with a 14 percent YoY growth. It also remained the top-selling 5G smartphone brand in India. Focus on supporting multiple 5G bands in the mid segment (INR 20,000 – INR 30,000) drove Samsung’s 5G growth.
