India’s smartphone shipments decline for third consecutive quarter; down 5% YoY: Report

India’s smartphone shipments declined for the third consecutive quarter, reaching 37 million smartphone units in Q1 2022, down 5 per cent year-on-year, according to the International Data Corporation ’s (IDC) Worldwide Quarterly Mobile Phone Tracker. 

According to the report, the beginning of the year was relatively slow as compared with Q1 2021 owing to the impact of the third wave of the Covid-19 pandemic, tight supplies, especially for the low-end price segments, and rising inflation leading to increasing end consumer prices.

According to Upasana Joshi, Research Manager, Client Devices, IDC India, 5G accounted for 31 per cent of shipments, with an ASP (Average Selling Price) of $375 in Q1 2022.

IDC estimates that shipments beyond $300 will be fully 5G by the end of 2022, Joshi added.

Key trends 

The surge in eTailer shares over the past two years have subsided owing to the pandemic, with a marginal drop to 49 per cent in Q1 2022. However, it came with a 7 per cent YoY growth in shipments. 

“The growth came from multiple sales events such as Republic Day and Valentine’s Day, combined with online exclusive offers,” the report said. 

Offline channel shipments declined 13 per cent YoY. 

“Despite no major Covid-related restrictions on movement, the retail footfall remained low through the quarter,” it said.

ASPs continued to increase for the fourth consecutive quarter, hitting an all-time high of $211, on the back of increased prices, both for existing and newly launched devices. 

Further, smartphones powered by MediaTek chipsets had a share of 51 per cent at an ASP of $174, while Qualcomm made a recovery increasing its share to 28 per cent with an ASP of $244.

The sub-$200 segment struggled as shipments dropped by 16 per cent, while the mid-range segment of $200-$300 grew to 18 per cent share from 14 per cent during Q1 2022.

The mid-premium segment (US$300-US$500) registered a 75 per cent YoY growth. The premium segment ($500+) accounted for a 5 per cent share, with 60 per cent of shipments coming from Apple.

“The outlook for 2022 remains cautious from the consumer demand standpoint. Due to rising inflation and lengthening of the smartphone refresh cycle, IDC expects Q2 2022 also to remain muted, while smartphone supplies gradually return to normal, resulting in a slower H1 2022, compared to 72 million shipments in H1 2021,” said Navkendar Singh, Research Director, Client Devices & IPDS, IDC India.

Top five vendors

Xiaomi continued to lead, though shipments declined by 18 per cent YoY in Q1 2022. Its market share fell from 27.2 per cent in Q1 2021 to 23.3 per cent in Q1 2022.

Its dominance in the online channel remained, with a 32 per cent share (including sub-brand POCO). In the 5G segment, it rose to the second slot, with volume drivers like the MI 11i series and Redmi Note 11T. However, the ASP of its 5G phones at $268 was still double that of its 4G phones.

Samsung regained its second slot, despite registering a YoY decline of 5 per cent in the quarter with a market share of 19 per cent. 

“The opening quarter for the Galaxy S22 series witnessed strong demand with impressive pre-bookings, especially in the offline channel,” the report said.

It also maintained its lead in the 5G segment with a 29 per cent share, with the Galaxy M32 and Galaxy A22 being the key models.

Realme dropped to the third spot with a 16.4 per cent market share. However, bmit emerged as the only vendor in the top five to register 46 per cent growth YoY, having the lowest ASP of $142. It also maintained its second position in the online space with 23 per cent share in Q1 2022, supported by affordable C-series offerings.

Vivo took the fourth slot, with a shipment decline of 17 per cent YoY and a market share of 15 per cent. It maintained its lead in the offline channel with 24 per cent share in the quarter. 

“With the launch of the new T series and additions to its sub-brand iQOO, its online shipments are expected to see movement in the upcoming quarters,” according to the report.

Oppo stood fifth with a 9.6 per cent market share, as its shipments fell 25 per cent. Apart from a huge marketing focus in the mid-premium Reno 7 series, Oppo also launched the K series, placing the majority in the online segment, the report said.