Covid-19, Inflation prime reason behind decline in India’s Smartphone Sales

Digital Desk: In India, smartphone shipments dropped for the third consecutive quarter in a row, falling 500 basis points on year in January-March. According to the International Data Corporation figures, smartphone shipments in India declined to 37 million units in the first quarter. 

While Xiaomi maintained its leadership position, all top-five manufacturers except  Realme saw a drop in shipments. The market research firm said that the decline in shipments is due to the third wave of Covid-19, supply-chain disruptions, especially for low-end sectors, and growing inflation boosting the cost of ownership across price segments. 

Xiaomi’s shipments fell 1,800 basis points during the quarter, resulting in a drop in market share. The Chinese company shipped 8.5 million devices throughout the quarter, according to the report. Its entire market share declined to 23.3 percent from 27.2 percent the year before. However, it maintained its 32 percent share of the ecommerce channel (including the Poco sub-brand). 

Samsung shipped 7 million units, an on-year down of 500 basis points. On the other hand, Samsung increased demand for the Galaxy S22 series. With 29 percent, it was also the market leader in 5G. 

Realme becomes the third-largest seller, delivering 6 million units and increasing an on-year growth of 4,600 basis points. The company’s average selling price was the lowest at Rs 11,000. With a 23 percent share of the online channel, it also maintained its second place.

Vivo shipped 5.5 million units, down 1,700 basis points. With 24 percent of the offline market, the Chinese corporation was the leader. Oppo shipped 3.5 million units, a decrease of 2,500 basis points.

Xiaomi finished second in the 5G segment, with the Mi 11i and Redmi Note 11T boosting sales.

“5G accounted for 31% of shipments, with an average selling price of Rs 29,000,” Upasana Joshi, Researcher Manager (Client Devices) at International Data Corporation India, said.

“By the end of 2022, IDC expects all shipments over $300 to be completely 5G,” she added.

“The future for smartphone shipments is also not promising. From a consumer standpoint, the outlook for 2022 remains cautious,” stated Navkendar Singh, Research Director (Client Devices & IPDS) at International Data Corporation India.

“IDC predicts 2Q22 to be muted due to rising inflation and the extent of the smartphone refresh cycle, resulting in a slower 1H22 compared to 72 million shipments in 1H21,” Singh added.