According to the International Data Corporation ’s (IDC) Worldwide Quarterly Mobile Phone Tracker, India smartphone shipments declined for the third consecutive quarter, shipping 37 million smartphone units in 1Q22, a drop of 5% YoY. The opening of the year was relatively slower as compared with 1Q21, due to the impact of the third wave of COVID, tight supplies especially for the low-end price segments, and rising inflation leading to increasing end consumer prices.
“5G accounted for 31% of shipments with an ASP of US$375 in 1Q22. IDC estimates that shipments beyond US$300 will be fully 5G by the end of 2022,” said Upasana Joshi, Research Manager, Client Devices, IDC India.
Key highlights from 1Q22:
- The pandemic-induced surge in eTailer shares over the past two years subsided with a marginal drop to 49% in 1Q22, but with 7% YoY growth in shipments. The growth came from multiple sales events such as Republic Day, Valentine’s Day, etc., combined with online exclusive offers. Offline channel shipments fell by 13% YoY. Despite no major COVID-related restrictions on movement, retail footfall remained low through the quarter.
- ASPs continued to rise for the fourth consecutive quarter, hitting an all-time high of US$211, on the back of increased prices both for existing and newly launched devices. MediaTek-based smartphones had a share of 51% at an ASP of US$174 while Qualcomm made a recovery increasing its share to 28% with and ASP of US$244.
- The sub-US$200 segment struggled as shipments dropped by 16%, but the mid-range segment of US$200-US$300 grew to 18% share from 14% in 1Q22. The mid-premium segment (US$300-US$500) registered a high growth of 75% YoY, and the premium segment (US$500+) accounted for a 5% share, with 60% 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 2Q22 also to remain muted, while smartphone supplies gradually return to normal, resulting in a slower 1H22 compared to 72 million shipments in 1H21,” says Navkendar Singh, Research Director, Client Devices & IPDS, IDC India.
|India Smartphone Market, Top 5 Company, Shipments in million, Market Share, Year-over-Year Growth, 1Q22|
|Company||1Q22 Shipment Volumes||1Q22 Market Share||1Q21 Shipment Volumes||1Q21 Market Share||Year-Over-Year Unit Change (1Q22 over 1Q21)|
|Source: IDC Worldwide Quarterly Mobile Phone Tracker, May 2022|
Top 5 Smartphone Vendor Highlights
Xiaomicontinued to lead, though shipments declined by 18% YoY in 1Q22. Its dominance in the online channel remained with a 32% share (including sub-brand POCO). In the 5G segment, Xiaomi jumped to the second slot with volume drivers like the MI 11i series and Redmi Note 11T. However, the ASP of its 5G phones at US$268 was still double that of its 4G phones.
Samsungregained its second slot, registering a YoY decline of 5% in 1Q22. The opening quarter for the Galaxy S22 series witnessed a strong demand with impressive pre-bookings, especially in the offline channel. It also maintained its lead in the 5G segment with a 29% share, the key models being the Galaxy M32 and Galaxy A22.
realmedropped to the third slot but emerged as the only vendor in the top 5 to register a growth of 46% YoY, having the lowest ASP of US$142. It also maintained its second position in the online space with 23% share in 1Q22 supported by affordable C-series offerings.
vivowas at the fourth slot, with a shipment decline of 17% YoY. It continued to lead in the offline channel with 24% share in 1Q22. With the launch of the new T series and additions to its sub-brand iQOO, its online shipments are expected to see movement in upcoming quarters.
OPPO, in the fifth slot, fell 25%. Apart from a huge marketing focus on the mid-premium Reno 7 series, OPPO also launched the K series, placing the majority in the online segment.