India’s smartphone shipments reached 161 million in 2021, up by 7 per cent YoY (year-on-year), according to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker.
This was even as supply and pandemic-related challenges created disruptions during the year.
Smartphone shipments picked up in the beginning of the year as 2021 started strong with pent-up demand from H2 2020 (July-December) and positive sentiments around vaccinations. However, “a severe second wave of Covid-19 dealt a blow to the growth,” as per the report.
“Constrained supplies resulted in low inventories across channels in the second half of the year, which usually has a high demand during the festive season,” the report said.
Q1 2022 (January-March) is expected to remain flat YoY amidst a low seasonal demand and a mild impact of the ongoing third wave of the pandemic which will give the brands time to replenish their inventories. Growth is likely to be driven by the transition from 4G to 5G, though it is expected to still be restricted to mid- and high-tier price segments.
“Consumers continue to demand better features like the camera, battery, and processors over 5G capability in the entry-level price segments. The large feature phone base will remain crucial but elusive to the smartphone market in the absence of any affordable offerings at the entry-level,” said Upasana Joshi, Research Manager, Client Devices, IDC India.
The ASPs (average selling price) for smartphones peaked at $190, growing by 15 per cent annually. In 2021, the share of the premium segment doubled from a year ago to 4 per cent, increasing more than 100 per cent annually, largely due to higher Apple shipments. Only the sub-$100 segment declined YoY in the year.
IDC expects ASPs in 2022 to be high due to the rising cost of components and higher share of 5G smartphones.
“Overall, supply challenges and the second wave of Covid-19 severely restricted the market’s ability to achieve double-digit growth in 2021. Consumer demand is lower than expected as we entered 2022, but supply challenges are expected to ease by mid-2022, which should help in maintaining similar growth levels in 2022,” said Navkendar Singh, Research Director, Client Devices & IPDS, IDC India.
Online channels dominate
The report also shed light on some key trends in the smartphone market. The online channel surpassed the offline channel with 81 million units, registering a 13 per cent YoY growth.
“This was driven by heavy marketing and initiatives like multiple sales festivals, attractive financing schemes, cashback & exchange offers, and trade-in programs,” as per the report. While the offline channel contracted in 2021, IDC expects offline shipments to recover some lost ground in 2022.
Top smartphone vendors
Xiaomi maintained its leadership position in the market for the fourth consecutive year with 40 million units shipped, gaining a 25.1 per cent market share in 2021. However, its overall shipments declined 1.5 per cent YoY in the year. The brand held a 22 per cent market share in Q4 2021.
Poco, Xiaomi’s sub-brand, emerged as the fastest growing online brand amongst the top five with 51 per cent YoY growth. Its entry-level models, Redmi 9A/9 Power/9, were the major volume drivers.
“Better supplies and a focus on offline channels should help drive growth for Xiaomi in 2022,” as per the report.
Samsung took the second spot with a 17.4 per cent market share in 2021. The company registered a YoY decline of 6 per cent in 2021, shipping 28 million units. Samsung slipped to the third position in Q4 2021 with a 17.3 per cent market share while Realme took the second spot during the quarter with an 18.8 per cent market share.
“There were persistent supply constraints especially for Galaxy A series in the low to mid-price segment, and for foldable devices in the premium segment,” as per the report. However, it led the 5G segment with a 21 per cent share, driven by the Galaxy A22, M32, and M42.
“A renewed focus on offline shipments in 2022, along with the momentum it has gained in the online segment, should help Samsung stay in a strong position in 2022,” according to the report. Vivo was at the third position in 2021 with a market share of 15.6 per cent, with a shipment decline of 6 per cent YoY. However, it continued to lead with a 28 per cent share of offline channel shipments in 2021. Growth was driven by its Y series which continued to be a major contributor, however, it faced supply challenges as well. As per IDC, the brand could leverage its sub-brand iQOO to expand its online presence and garner share in 2022.
Realme, which was at the second spot in Q4 2021, stood fourth overall in 2021 with a 15 per cent market share. The brand registered the highest growth of 26 per cent YoY in 2021 amongst the top five vendors. In the online space, it continued to be at the second spot with a 21 per cent share in 2021. Realme’s UNISOC-based shipments reached 60 per cent of its total, ensuring sufficient supplies in Q4 2021.
Oppo was at the fifth spot, taking an 11.1 per cent market share. It witnessed a healthy growth of 8 per cent YoY in 2021 to 18 million units. It also surpassed Samsung for the second slot annually in the offline channel with a share of 18 per cent.
“With a larger focus on higher ASP devices like the Reno 6/7 series, OPPO’s play in the mid-premium segment has risen compared to previous years. However, its online presence remains limited,” as per the report. Separately, MediaTek-based smartphones recorded a 54 per cent market share. This created a bigger lead over Qualcomm with more than 85 per cent of its smartphones below $200. UNISOC managed to regain some momentum,, recording a 7 per cent share, up from 2 per cent in the previous years.