India smartphone market Archives

India Smartphone Market Records Highest Ever Q1 Decline of 19%, 5G Smartphones Contribution at 43%

Q1 2023 (January-March) was the third consecutive quarter to see a decline in India’s smartphone shipments.
5G smartphones’ contribution to total smartphone shipments reached a record of 43%.
With a 20% share, Samsung led the Indian smartphone market for the second consecutive quarter. It was also the top 5G brand.
vivo captured the second spot and became the leading brand in the affordable premium segment (INR 30,000-INR 45,000, ~$370-$550)
Apple continued to lead the premium and ultra-premium segments, with strong growth in offline channels.
OnePlus was the fastest growing brand, followed by Apple.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – April 27, 2023

India’s smartphone shipments declined 19% YoY in Q1 2023 (January-March) to reach over 31 million units, according to the latest research from Counterpoint’s Market Monitor service. This was the highest ever Q1 decline seen by India’s smartphone market, besides being the third consecutive quarterly decline. Sluggish demand, high inventory build-up carried over from 2022, growing consumer preference for refurbished phones and pessimistic channel view of the market contributed to this decline.

Commenting on the market dynamics, Senior Research Analyst Shilpi Jain said, “We are observing a change in consumer behaviour – demand is now concentrated around promotional periods. The beginning of the quarter saw a surge in demand across channels around the Republic Day sales period. However, demand dropped significantly after the sales period. Channel players are now focussing on getting rid of existing inventory instead of creating a fresh inventory of new models. It is crucial for OEMs to align their strategies with changed consumer and market dynamics. The quarter’s silver lining came from 5G smartphones, whose contribution (43%) crossed 40% for the first time, registering 23% YoY growth as consumers kept upgrading to 5G devices. We believe these situations will remain similar in Q2 2023 as well with growth coming back in the second half of the year owing to faster 5G upgrades, easing macroeconomic pressure and festive season.”

Commenting on the competitive landscape and price band analysis, Senior Research Analyst Prachir Singh said, “Premiumization trend is becoming stronger with each passing quarter. The premium segment’s share almost doubled in Q1 2023 compared to Q1 2022. Affordability is the key here as we saw more financial schemes being launched, like Apple’s ‘No-cost EMI with zero down payment’ through HDB Financial Services, offers on latest premium segment launches, increase in trade-in offers and push from retailers. The premium segment’s growth is reducing the mid-tier share as consumers are upgrading to higher-priced smartphones. The sub-INR 10,000 price band continued to decline in Q1 2023, with its shipments falling 9% YoY. This segment is suffering declining demand due to an elongated replacement period, declining feature phone-to-smartphone migration and lower presence of hero models.”

Source: Counterpoint Research Market Monitor, Q1 2023
Note: Price band is based on retail price

Source: Counterpoint Research Market Monitor, Q1 2023
Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes IQOO; Figures not exact due to rounding

Market Summary:

Samsung maintained its top position in the Indian smartphone market for the second consecutive quarter with a 20% share in Q1 2023. It also remained the leading brand for 5G shipments, accounting for a 24% share. The new 5G-capable A series performed well in the offline market, contributing 50% of the shipments. Samsung’s ultra-premium segment (>INR 45,000, ~$550) grew 247% YoY in Q1 2023 driven by the successful launch of the S23 series and financing options.
vivo also maintained its second position in Q1 2023 with a 17% market share. Although there was a 3% YoY decline, the company’s robust omnichannel presence and cost-effective pricing helped the OEM in maintaining its position. vivo was the leading brand in the affordable premium segment (INR 30,000-INR 45,000, ~$370-$550) with a 40% share driven by the V series.
Xiaomi experienced a significant drop from Q1 2022, falling to the third spot during Q1 2023 with a 16% share. It suffered a 44% YoY decline, which is the largest the brand has ever recorded. The decline was due to weak demand in the sub-INR 10,000 (~$245) segment, more dependence on online channels even when demand is higher in offline channels, and a confusing portfolio. The Redmi Note 12 series received a positive response from consumers, contributing to over 14% of Xiaomi’s total shipments.
OPPO took the fourth position in India’s smartphone market, recording 9% YoY growth with a 12% share. The brand has been consistently expanding its shipments in the high-tier segments, with a particular focus on the upper mid-tier range (INR 20,000-INR 30,000), where it saw the highest growth among all brands, registering 144% YoY growth driven by the F series.
realme saw a 52% YoY decline in Q1 2023, resulting in the brand slipping to fifth place with a 9% share. realme continued to face challenges such as inventory build-up and unfavourable market conditions in the sub-INR 10,000 segment. It is now focusing on offline retail to expand consumer base. The brand also launched the C55 series, which did well during the quarter, accounting for 11% of its shipments.
Transsion Group brands itel, Infinix and TECNO accounted for 16% of India’s handset market and secured the first spot there in Q1 2023 with 19% YoY growth. itel captured 3^rd spot in India handset market registering 23% YoY growth. TECNO captured the fourth spot in the sub-INR 10,000 smartphone segment driven by strong demand for the Spark Go 2023. Infinix was the fourth fastest-growing brand with 27% YoY growth.
OnePlus was the fastest growing brand with 72% YoY growth in Q1 2023 driven by the strong demand for its OnePlus Nord CE 2 Lite and newly launched OnePlus 11 series. OnePlus’ Nord CE 2 Lite 5G was the best-selling model in Q1 2023. It captured the second spot in the premium segment (INR 30,000-INR 45,000 or ~$370-$550) with a 30% share. Furthermore, the brand has been actively expanding its offline presence by opening experience stores in various cities.
Apple grew 50% YoY and grabbed a 6% share in Q1 2023. The brand maintained its lead in the overall premium segment (>INR 30,000) as well as in the ultra-premium segment (>INR 45,000, ~$550) with 36% and 62% shares respectively. Its new financing scheme with HDB and promotions on the latest iPhone 14 series fueled the growth in offline channels. The recent opening of its own retail stores in the country will further strengthen Apple’s brand image and lead to better growth avenues not just for iPhones but for the whole Apple ecosystem.
Among local brands, Lava did well with its refreshed portfolio in the sub-INR 10,000 segment. Lava continues to offer the cheapest 5G smartphone (Blaze 5G). It was also the third fastest-growing brand in Q1 2023 with 29% YoY growth.

The comprehensive and in-depth Q1 2023 Market Monitor is available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

The Market Monitor research relies on sell-in (shipments) estimates based on vendors’ IR results and vendor polling, triangulated with sell-through (sales), supply chain checks and secondary research.

You can also visit our Data Section (updated quarterly) to view the smartphone market shares for World, US, China and India.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Analyst Contacts

Shilpi Jain

Prachir Singh

Tarun Pathak

Follow Counterpoint Research

India Smartphone Shipments Decline 9% YoY in 2022, Premium Segment Share Hits Double Digits for First Time

Premium segment (>INR 30,000 or ~$365) contributed 11% to India’s smartphone shipments and 35% to market revenue in 2022, the highest ever.
Samsung led the market in 2022 in terms of shipment value share with a 22% share, followed by Apple.
However, in terms of shipment volume, Xiaomi led the market in 2022 with a 20% share, closely followed by Samsung. But Xiaomi slipped to third position in Q4 2022 with Samsung and vivo capturing first and second spots respectively.
5G smartphones captured a 32% share in 2022. Samsung became the top-selling 5G brand in 2022 with a 21% share.
Apple continued to lead the premium smartphone segment, with the iPhone 13 emerging as the top-selling model. Apple also led the market in Q4 2022 in terms of shipment value.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – January 27, 2023

India’s smartphone shipments declined 9% YoY to reach over 152 million units in 2022, according to the latest research from Counterpoint’s Market Monitor service. The YoY decline, which is the second ever in India’s smartphone market, can be attributed to the decline in entry-level and budget segments which faced supply constraints at the beginning of the year and then witnessed lower demand throughout the year. However, the premium segment continued to rise and captured a double-digit share for the first time, leading to growth in retail ASP.

Commenting on the market dynamics, Senior Research Analyst Prachir Singh said, “Consumer demand started declining from the second quarter when the global economy was crippled by multiple macroeconomic issues like all-time high inflation, rising unemployment and geopolitical conflicts, affecting India’s economy as well. Inventory build-up across channels after the second quarter led to lower-than-expected shipments throughout the second half of the year. We believe that the inventory and demand situation will continue to affect the market in the first half of 2023 before improving in the latter half driven by the festive season and upgrades to 5G devices.”

Commenting on the competitive landscape and price band analysis, Research Analyst Shilpi Jain said, “Despite declining shipments, the premium smartphone market’s share kept rising in 2022 and reached 11%, the highest ever. This paradoxical trend implies that India’s smartphone market is moving from being volume-driven to value-driven. While entry-tier and budget segments were most affected, the premium segment remained immune and showed double-digit growth. OEMs’ increased focus, consumers upgrading for premium features and, most importantly, availability of various financing schemes like ‘No-cost EMI’, ‘Buy Now, Pay Later (BNPL)’ and ‘Samsung finance+’ boosted this premiumization trend. We believe the momentum for the premium segment will continue in 2023 as well owing to OEMs’ focus and faster consumer upgrades.”

Source: Counterpoint Research Market Monitor, Q4 2022
Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes IQOO; Figures not exact due to rounding

Overall, India smartphone market revenue remained flat despite 9% YoY decline in shipments. Samsung led the India smartphone market revenue with 20% share driven by its premium smartphone models, especially the Galaxy S22 series. Samsung increased its share in the premium segment and re-captured second position. Apple rose from the fourth position in 2021 in revenue share and captured the second position in 2022. iPhone 13 captured the top smartphone model spot in 2022. China brands saw a decline in value share cumulatively, capturing 60% revenue share in 2022 as compared to 65% in 2021.

Source: Counterpoint Research Market Monitor, Q4 2022
Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes IQOO; Figures may not add up to 100% due to rounding

Market Summary

Xiaomi slipped to third place in Q4 2022 but held the top spot in India’s smartphone market in 2022 with a 24% YoY decline. 2022 was a tough year for Xiaomi as it faced legal complications, component shortages and intense competition. Inventory build-up in online channels during the festive season further slowed its shipments in Q4 2022.
Though Samsung held the second spot in 2022, it emerged as the leading brand in Q4 2022. It was the only smartphone brand among the top five which did not decline and remained flat. Samsung also became the top 5G smartphone brand in 2022 with a 21% share. It also led the affordable premium segment (INR 30,000-INR 45,000 or ~$365-550) in 2022 driven by the revamping of the A series and attractive promotional offers during the festive season. It was also the fastest growing brand in the ultra-premium segment (>INR 45,000 or ~$550).
vivo secured second place in Q4 2022 and managed to take third place in 2022. It also captured the third spot in 2022 in terms of shipment value share. A strong focus on the offline market propelled its growth in Q4 2022. Affordable pricing strategies also helped vivo to expand its consumer base, while its subsidiary brand IQOO strengthened its hold in the online market. It also held the second spot in 5G smartphone shipments in 2022 with a 17% share, driven by the T series and V series.
realme slipped to fourth place in 2022, with a 14% YoY decline due to higher exposure to the sub-INR 10,000 segment, where demand was most affected. Many factors hampered realme’s growth in 2022, such as inventory build-up, unfavorable market conditions in the sub-INR 10,000 segment, and economic headwinds. However, the brand is now focusing on mid-tier and 5G as it launched its number series towards the end of the year with all 5G SKUs in the >INR 15,000 segment.
OPPO maintained its fifth position in India’s smartphone market in 2022 with a 7% YoY decline. It revamped its portfolio in the budget segment to drive volumes. However, the major focus remained on the upper mid-tier (INR 20,000-INR 30,000 or ~$240-$365) as it was the fastest growing brand, registering 80% growth within this segment driven by the F series.
Transsion Group brands itel, Infinix and TECNO accounted for 12% of India’s handset market and secured the third spot in 2022. In the sub-INR 6,000 (~$73) segment, itel was the best-selling brand driven by the A27 and A23 Pro sales. itel also led India’s feature phone market in 2022. TECNO took third place in the sub-INR 8,000 (~97) segment driven by the Spark Go 2022 and Pop 5 LTE sales. Infinix and TECNO are now focusing on higher price segments as they entered the premium segment towards the year-end.
Apple grew 16% YoY in 2022. It maintained its lead in the overall premium segment (>INR 30,000 or ~$365) as well as the ultra-premium segment (>INR 45,000 or ~$550). The iPhone 13 became the top-selling model in 2022 in the overall Indian smartphone market. Apple also led the India smartphone market in terms of shipment value in Q4 2022. India has become a strategic market for Apple. Increasing ‘Make in India’ capabilities for both local consumption and exports, expanding offline share through LFRs and aggressive promotions during the festive season accelerated Apple’s growth in India.
OnePlus grew 50% YoY in 2022 driven by the OnePlus Nord CE 2 series. It captured the second spot in the affordable premium segment with a 22% share. The Nord CE 2 Lite was the top-selling 5G model in the sub-INR 20,000 (~$240) segment in 2022. OnePlus focused on diversifying and expanding its product portfolio across different price points and increasing its offline presence to drive sales.

The comprehensive and in-depth Q4 2022 Market Monitor is available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market shares for World, US, China and India.

Background

Analyst Contacts

Shilpi Jain

Prachir Singh

Tarun Pathak

Follow Counterpoint Research

Quarterly Firsts: India Smartphone Shipments Show YoY Q3 Decline, iPhone Model Tops India Shipment Chart

India’s smartphone shipments declined 11% YoY in Q3 2022 to reach over 45 million units.
Xiaomi led the market with a 21% shipment share, closely followed by Samsung.
One in three smartphones shipped during the quarter was a 5G smartphone. Samsung led the 5G smartphone segment with a 20% share, closely followed by OnePlus and vivo.
Apple led the premium smartphone segment, followed by Samsung.
For the first time ever, an iPhone (iPhone 13) topped the overall India smartphone quarterly shipment rankings.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – November 4, 2022

India’s smartphone shipments declined 11% YoY to reach over 45 million units in Q3 2022 (July-September), according to the latest research from Counterpoint’s Market Monitor service. The YoY decline, which is the first ever for a Q3, can be attributed to the high base last year due to the pent-up demand during Q3 2021, as well as lower consumer demand in the entry-tier and budget segments in Q3 2022.

Commenting on the market dynamics, Senior Research Analyst Prachir Singh said, “Consumer demand started increasing in August and peaked in the last week of September during the festive sales, especially in the mid-tier and premium segments. However, as the market exited Q2 2022 with high inventory, and there was modest demand in the entry-tier and budget segments, we saw less than expected shipments during Q3 2022. Almost all the brands were impacted, especially in the entry-tier and budget segments. The unfavourable macroeconomic conditions will continue to affect the Indian smartphone market in Q4 2022 as well, especially after Diwali. However, we may witness a demand uptick during the year-end sales.”

Commenting on the competitive landscape and brand strategies, Research Analyst Shilpi Jain said, “After the 5G network rollout, consumers are quite keen on purchasing 5G smartphones, especially the upgrading users. In Q3 2022, 5G smartphones registered 31% YoY growth and contributed to 32% of the total shipments. In terms of price bands, the premium segment (>INR 30,000) reached its highest ever share of 12% during this quarter. Apple led the premium segment, followed by Samsung and OnePlus. The brand reached its highest ever shipment share in India and the iPhone 13 became the top smartphone model in Q3 2022, a first for Apple in India. The sub-INR 10,000 price band continues to be under pressure due to lower consumer demand and contributed to 27% of the total shipments, down from 31% a year ago.”

Source: Counterpoint Research Market Monitor, Q3 2022
Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes IQOO; Figures not exact due to rounding

India’s mobile handset market (including both smartphones and feature phones) declined 15% YoY in Q3 2022. The feature phone market registered a decline of 24% YoY due to adverse macroeconomic conditions continuing to impact the bottom-of-the-pyramid users. itel led India’s feature phone market in Q3 2022 with a 28% share. itel has been the top feature phone brand for almost three years in a row now.

Source: Counterpoint Research Market Monitor, Q3 2022
Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes IQOO; Figures may not add up to 100% due to rounding

Market Summary

Xiaomi led the Indian smartphone market in Q3 2022, though its shipments declined 19% YoY. Weak consumer demand in the entry tier was the major factor behind this decline. However, the new launches during the quarter in the budget and mid-tier segments drove Xiaomi’s shipments and the brand managed to maintain its top position in the market. In the sub-INR 20,000 price band, Xiaomi was the top 5G smartphone brand in Q3 2022.

Samsung held the second spot in Q3 2022. It was the only smartphone brand among the top five to register an annual growth. Samsung led the handset (feature phone + smartphone) market as well with an 18% share. It also remained the top-selling 5G smartphone brand in India. Aggressive online channel stock replenishment before the festive season with attractive promotions and offers led to this growth. Samsung was the top smartphone brand in September 2022. It led the INR 10,000-INR 20,000 price band driven by the strong performance of Galaxy M-series and F-series models. In the premium segment, Samsung was the fastest growing brand among the top five brands.

vivo captured the third position even as its shipments declined 15% YoY. Strong focus on the budget segment with the Y01 and Y15s in the offline segment, revamping of the V series and increasing online presence with IQOO and T-series smartphones during the quarter helped vivo maintain its third position. The Y01 was the second best-selling smartphone in the Indian smartphone market in Q3 2022.

realme remained at the fourth spot in Q3 2022, capturing a 14% share. The brand grew 2% QoQ. Three out of the top 10 models in the INR 10,000-INR 15,000 price band were from realme. realme’s C series accounted for 55% of its portfolio and was the main driver for its shipments in Q3 2022.

OPPO maintained its fifth position in India’s smartphone market, though it declined 7% YoY in Q3 2022. OPPO is consistently increasing its shipments in the high-tier segments. In Q3 2021, the >INR 20,000 price band contributed to 15% of OPPO’s portfolio, which increased to 22% in Q3 2022. With the Reno 8 Pro, the brand made its re-entry into the ultra-premium segment (>INR 45,000).

Transsion Group brands (itel, Infinix and TECNO) captured a 12% share in India’s handset market to climb to the third spot. itel led the sub-INR 6,000 smartphone segment with a 56% share driven by strong shipments of the A23 Pro and A27. TECNO captured the third spot in the sub-INR 8,000 smartphone segment driven by strong demand for the Spark Go 2022 and Pop 5 LTE.

Apple reached its highest ever share of 5% in India’s smartphone market during the quarter driven by a strong channel push ahead of the festive season. The iPhone 13 became the first iPhone to top the overall smartphone shipments in India in a quarter. In the premium segment (>INR 30,000), Apple led the smartphone shipments, capturing a 40% share.

OnePlus grew 35% YoY in Q3 2022 driven by the Nord CE 2 series and Nord 2T. The brand remained at the third spot in the premium segment (>INR 30,000). OnePlus led the INR 20,000-INR 30,000 price band driven by its Nord portfolio. OnePlus also captured the second spot in India’s 5G smartphone shipments in Q3 2022.

Nothing launched its first smartphone during this quarter and managed to capture mindshare as well as share in the premium segment. Another brand which made its impact in the premium segment was Google with its Pixel 6a smartphone that performed strongly during August and September.

The comprehensive and in-depth Q3 2022 Market Monitor is available for subscribing clients. Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market shares for World, US, China and India.

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Analyst Contacts:

Prachir Singh

Shilpi Jain

Tarun Pathak

Follow Counterpoint Research

India 2021 Festive Season to See Record Smartphone Sales at $7.6 Billion

The smartphone retail average selling price (ASP) during the festive season will grow 14% to reach its highest ever at $230.
High consumer demand in the mid and premium segments will drive the sales.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – October 19, 2021

India’s festive shopping season this year kicked off during the first week of October when online platform giants Amazon and Flipkart announced their marquee Great India Festival and Big Billion Days sales. The season will end on November 4 with the Diwali festival.

Source: Counterpoint Research India Festive Season Tracker, 2021

Commenting on the overall market dynamics during the season, Senior Analyst Prachir Singh said, “The festive season has been driving smartphone sales in India due to high consumer demand during Dusshera and Diwali. This trend has been accelerated this year by the high pent-up demand backed by aggressive promotions in the mid and premium segments. We estimate that almost $7.6 billion worth of smartphones will be sold during the ongoing festive season. This highest ever number is coming at a time when the global smartphone industry is facing component shortages. As a result, OEMs have been forced to increase prices, which will have a higher impact on the mass market and budget segments.”

Source: Counterpoint Research India Festive Season Tracker, 2021

Research Director Tarun Pathak said, “Although the growth in market value during the 2021 festive season is expected to be 1% YoY, the retail ASP will grow at 14% YoY. The overall consumer sentiment has been positive going into the festive season. Many consumers have decided to spend from their accumulated savings for something that is more personal. This trend will drive a faster smartphone upgrade during the festive season. Apart from this, the 2021 festive season is seeing higher trade-ins and aggressive EMIs that increase device affordability and help consumers bypass multiple price barriers. This has helped drive the sales of mid-to-high tier (>$200) smartphone models and, subsequently, the overall ASP. Many OEMs sensed this trend and brought out aggressive offers on premium devices. The relatively higher sales of premium segment smartphones also helped offset the losses in the mass market due to price hike.”

Background:

Analyst Contacts:

Prachir Singh

Tarun Pathak

Follow Counterpoint Research

No Let-up in India Refurbished Smartphone Market Boom

India is a booming market for pre-owned smartphones. The market showed its potential in 2019 when it grew the most globally. Even in 2020, the second half of the year more than made up for the volumes lost in the first half, according to Counterpoint’s Global Refurb Smartphone Tracker. This year too, the market is expected to report stellar numbers.

Source: Global Refurbished Smartphone Tracker

Important factors shaping the Indian market

Importing pre-owned smartphones into India for usage is curtailed by the government. But that does not slow down the players dealing with volumes in the refurb market. Although India is relatively self-sufficient with supply compared to other countries, one of the main challenges is a complex and unstructured chain in the value system.

The brands and models which sold 2-3 years ago are the ones that make up the bulk of the supply in the secondary markets. Therefore, the players do not have control over what brands or models come their way. Similarly, the level of repair or refurbishment differs across volumes. Refurb players then have to take a call on which ones can be taken in and which need to be disposed of to others in the chain.

While brands like Apple have the most demand, they also command a premium price in the Indian secondary market. Unlike others, Indian consumers have also shown an affinity towards Chinese brands like OnePlus, Xiaomi, OPPO and vivo.

The online channel for buybacks and resale activities has been present in the refurbished smartphone market for a while now. Most large players already have online platforms which are promoted well to ensure convenience. This holds true for metro and Tier I cities. However, the strategy to tap rural areas needs to be different. These areas hold a high potential and that is why players are keen to gain volumes at the earliest.

2021 Outlook

As online sales of new smartphones increase, more consumers choose to trade in their devices, which provides an added supply to the secondary markets.
Increasing volumes are flowing in from Tier II, III and IV towns. These geographies also represent the highest potential for refurbished smartphone demand.
Consumers who previously chose to sell to friends/acquaintances or small neighborhood stores are looking at selling to structured businesses with an online presence and doorstep options. This spells value for the consumer in the form of money and convenience.

There is a need to structure the vast unorganized secondary smartphone market in India but currently, players are looking at gaining volumes in a market where the potential is very high.

Podcast: COVID-19 Second Wave to Test Resilience of India's Growing Smartphone Market

As India battles a more virulent second wave of COVID-19, lockdown-like restrictions have been imposed across several states. This has impacted several businesses and industries, including the country’s smartphone market, which had registered record growth in Q1 2021 due to pent-up demand. With the restrictions on, the smartphone growth story has not continued in Q2 2021 as smartphones are not considered an essential category.

The number of COVID-19 cases has come down from its peak in the last two weeks of May, bringing some respite. But how much of an impact has the second wave created on India’s smartphone sales and manufacturing? There is also a looming uncertainty around a possible third wave in the next few months that could lead to another demand and supply disruption.

In the latest episode of ‘The Counterpoint Podcast’, host Peter Richardson is joined by Research Director Tarun Pathak and Senior Analyst Prachir Singh. They discuss the current scenario in the Indian smartphone market, the global chip shortage, and how manufacturing capacity and inventory have been affected. The imbalance also raises questions about the forecast and outlook for 2021, where Prachir and Tarun have covered different scenarios and use cases that could guide the market this year.

Hit the play button to listen to the podcast

You can read the podcast transcript here.

Podcast Chapter Markers

2:23 – How India’s smartphone market performed in 2020, and how it progressed into 2021?
6:19 – How are the COVID-19 second wave and lockdown-like restrictions impacting smartphone sales in India?
8:22 – What impact does the second wave have on India’s smartphone production capacity?
10:55 – What is happening on the inventory side with a demand reduction?
12:16 – There is a looming possibility of a third wave in the coming months, so what kind of impact could that have?
14:53 – Is the reduced smartphone demand helping ease pressure on smartphone chipmakers and component players?
18:13 – Is COVID-19 impact further lengthening the smartphone replacement cycle?
24:47 – Where does our forecast for the Indian smartphone market stand currently?

Also available for listening/download on:

Online Channel Share Increases to 43% in the Indian Smartphone Market in Q2 2020 As Consumers Preferred Contact-Less Shopping Experience

Amazon held its highest ever 47% share among online channels
Flipkart led the sub-INR 10,000 segment with more than 50% share in online channels
Xiaomi remained the top online smartphone brand with a 44% share
Samsung grabbed 25% share in online channels, its highest ever share in a quarter
OnePlus was the top premium smartphone brand on Amazon
realme remained the top brand on Flipkart

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –

August 13, 2020

Online Channels held a 43% share in Q2 2020 in the India online smartphone market, according to the latest research from Counterpoint Research. The increase in online channels share is due to a shift in consumer behavior, who are now preferring contact-less shopping experience and practicing social distancing. The quarter also saw Amazon reaching its highest ever share of 47% among online channels, compared to Flipkart’s 42%. The share of online channels in overall smartphone shipments reached 43% during the quarter as consumers preferred contact-less shopping experiences. Looking forward, we see online channels remaining strong this year and taking a 45% share in the Indian smartphone market in 2020. The COVID-19 pandemic had a huge impact on the current market scenario and innovative business models have emerged.

Commenting on the COVID-19 situation and market dynamics, Senior Research Analyst Prachir Singh said: “The COVID-19 pandemic had a huge impact on the overall smartphone market, April being a washout month. Online channels’ shipments also declined compared to the last year. However, due to the current circumstances, consumers are preferring online platforms. We have already witnessed pre-COVID level shipments at the end of Q2 2020 due to the pent-up demand created in the market by the nationwide lockdown. Brands are aligning their product as well as channel strategies to drive up volumes. Multiple financing options and attractive offers have made the devices more affordable for consumers. During the quarter, multiple brands adopted an online-to-offline (O2O) business model and hyperlocal delivery to help their offline channel partners.”

Commenting on the Q2 2020 findings, Research Analyst Shilpi Jain said: “Online channels remained strong in Q2 2020, grabbing a 43% share in the overall Indian smartphone market. Pent-up demand and changed consumer behavior due to the current circumstances, accompanied by attractive offers and promotions by online platforms, were the main reasons for the increased share. During the quarter, Flipkart organized Big Savings Day Sale to drive up volumes. Due to the preference for online channels, no offline-exclusive model was launched during the quarter. However, during the same period, 11 online-exclusive SKUs were launched.”

Commenting on the brand performance, Jain said: “Xiaomi remained the market leader in online channels with 44% market share. Xiaomi Redmi 8A Dual was the top model for the brand in online channels. Samsung was quite aggressive on online channels and increased its share to 25%, its highest ever share in online channels. Strong shipments of M-series smartphones led to this increase. realme remained the top brand on Flipkart. In Q2 2020, offline channels captured 57% market share. We believe that offline channels will fare better during the latter half of the year. Vivo remained the top brand in offline channels, followed closely by Samsung. Vivo Y91i was the top model for offline channels.”

Exhibit 1: India Online Smartphone Market Share by Channel – Q2 2020

Source: Counterpoint Research Market Monitor Q2 2020

Exhibit 2: India Online Smartphone Top Brands Share – Q2 2020

Source: Counterpoint Research Market Monitor Q2 2020

Market Summary for Q2 2020:

While smartphone shipments in the online segment declined by 46% YoY, the offline segment declined by 54% YoY.
Amazon became the top online smartphone channel for the first time, with a 47% share. Xiaomi, Samsung, and OnePlus drove the shipments for Amazon.
Amazon saw strong shipments of Xiaomi Redmi 8A Dual, Samsung Galaxy M30s, and Galaxy M31. Among the top ten smartphone models on Amazon, nine were from Xiaomi and Samsung.
The INR 15,000 – INR 20,000 price band contributed the most and reached its highest ever share on Amazon. Samsung Galaxy M31 and M30s were the top models in this price band on Amazon.
OnePlus remained the top premium smartphone brand on Amazon.
Flipkart’s share declined; however, the platform led the sub-INR 10,000 price band with more than 50% share in the overall online smartphone market.
realme remained the top brand on Flipkart. Among the top ten models on Flipkart, five were from realme. Newly launched Narzo 10 series drove the shipments for the brand.
realme, Xiaomi, Samsung, and Poco contributed most for Flipkart and accounted for more than three-fourths of its total smartphone shipments.
Poco maintained its strong performance in online channels in Q2 2020 as well. Poco X2 was the second-highest shipped model on Flipkart.
The top 5 brands captured more than 88% of the total online market.
Xiaomi alone captured more than 44% of the total online market in Q2 2020. Its Redmi 8A Dual, Note 8 series and Redmi 8 drove volumes, contributing to more than three-fourths of Xiaomi’s total online shipments.
Samsung increased its share in online channels to 25%, driven by its Galaxy M-series models. Top five online models for the brand were all Galaxy M-series and they contributed to almost 90% shipments for the brand.
Vivo hosted sales on both the leading online platforms, offering discounts on its models. The brand maintained its top position on offline channels, driven by Y91i and Y11.
Six out of the top ten online models were from Xiaomi, followed by Samsung with three models. Xiaomi Redmi 8A Dual was the best-selling device in Q2 2020.
OnePlus drove the shipments in the online premium smartphone segment, capturing more than 50% share, followed by Apple with a 25% share.

The comprehensive and in-depth Q2 2020 Market Monitor is available for subscribing clients. Please contact us at press(at)counterpointresearch.com for further questions regarding our latest research and insights, or press enquiries.

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Shilpi Jain

Tarun Pathak

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Samsung Topples Xiaomi to Regain Number One Position in India in Q2 2018

Top five brands captured 82% of the total smartphone market; OnePlus (284%), Honor (188%) and Xiaomi (112%) were the fastest growing smartphone brands annually.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires –

July 24th, 2018

According to the latest research from Counterpoint’s Market Monitor service, the India smartphone market returned to double digit growth (18%) YoY after flat first quarter growth. The feature phone market continues to outpace the smartphone market with a YoY growth of 21%.

Commenting on the findings, Anshika Jain, Research Analyst stated, “India’s smartphone market returned to double digit growth during the quarter and is likely to grow in double digits for the entire year. Growth during the quarter was driven by new launches and strong promotions across both online and offline channels. Smartphone brands leveraged the Indian Premier League (IPL) 2018 season, as they timed their new launches and campaigns around the same with a slew of offers across multiple channels”

Commenting further Ms. Jain noted, “As volume-share of the top five players combined exceeded 80%, local and smaller players were forced to change their strategies, which involved changing channels and product strategy along with cutting the number of SKUs. Additionally, the increase in duties for handset components announced during the beginning of the quarter, forced smaller players to delay product launches as they didn’t have the necessary operations to save on the increased tariffs for certain components, like populated printed circuit boards, mechanics and others”

Commenting on the brand performance, Karn Chauhan, Research Analyst stated, “Samsung has regained the leading position after ceding it to Xiaomi two quarters ago. The success of Samsung during the quarter can be attributed to its refreshed J-series; it launched more models than any other brand, across multiple price points, during the quarter. These new launches brought some of the most popular and sought-after features like, dual camera, infinity display, and facial unlock to different price segments for Samsung for the first time ever. Additionally, the strong offline distribution and aggressive marketing campaign around its J-series helped Samsung to gain not only market share but also mind share, during the quarter. 2H 2018 is likely to be a close race between Samsung and Xiaomi — especially during the upcoming festive season”.

Exhibit 1: India Smartphone Market Share – Q2 2018

Source: Counterpoint Research Market Monitor Q2 2018

Note: *OPPO includes Realme

Exhibit 2: India Featurephone Market Share – Q2 2018

Source: Counterpoint Research Market Monitor Q2 2018

Market Summary:

Smartphone segment contributed to half of the total handset market during Q2 2018.
Top five brands captured a record 82% share of the total smartphone market during the quarter
Reliance Jio captured almost half of the total feature phone market driven by the success of its Jiophone, its highest ever.
Reliance Jio is likely to maintain the growth momentum as it refreshed its Jiophone, coupled with an aggressive upgrade offer of INR 501 (<US$10) and bringing popular apps including WhatsApp to Jiophone 2.
In the smartphone segment, Samsung regained its lead in Q2 2018 with 29% market share thanks to strong performance of models such as Galaxy J6, Galaxy J2 2018 and Galaxy J4 focusing on the budget segment.
Xiaomi recorded its highest ever shipments in India during Q2 2018. The growth can be attributed to its strong product and supply chain strategy that has allowed it to launch products with a longer shelf-life than its competitors and that too in the important sub INR 10000 (<US$150) segment. Recently, its share in the offline channel has increased as it pivots to a multi-channel strategy in India.
Vivo shipments increased sequentially driven by new launches, celebrity endorsement and aggressive campaign around IPL 2018. Its V9 became its most popular V series smartphone ever.
During the quarter OPPO launched its sub-brand Realme in a bid to increase its online presence. Realme which debuted in partnership with Amazon quickly managed to grab 1% share of the total smartphone market due to strong perceived value-for-money, unique industrial design and positive customer feedback for its initial model.
OnePlus (284%), Honor (188%) and Xiaomi (112%) were the fastest growing smartphone brands during the quarter. Honor continues to retain its share among top five brands while OnePlus led the premium (>INR30,000) segment for the first time ever.
Apple had a slow quarter as it underwent changes in its distribution strategy. Apart from this, its domestic assembling is yet to pick-up pace, which means the Cupertino giant is still relying on imports for its sales in India. Apple had 1% market share during the quarter, its lowest in recent history.
Lava is the only local brand that registered positive annual growth during the quarter, driven by entry-level models including its first Android Go device – Z50.
Transsion group led by iTel, Tecno, Infinix and Spice continues to grow in the smartphone segment in India. Tecno grew 74% sequentially as it brought full screen and facial unlock features at an entry level price during the quarter.

Top Selling Models:

Top five best-selling models captured almost 29% smartphone share during Q2 2018.
Three out of the top five models during the quarter were from Xiaomi with Redmi 5A being the best seller during the quarter.
Demand for the Xiaomi Redmi Note 5 Pro remained strong as it continues to out-spec its rivals in similar price bands.
Samsung’s new J6 entered the top five rankings within a quarter of the launch. In fact, new launches during the quarter like Galaxy J6, J2 (2018) and J4 series contributed to more than half of Samsung’s total smartphone shipments.
Vivo’s Y71 was its best-seller in the mid-segment while its V9 series remained the leader in the $300-$400 segment.
OnePlus 6 was the best-selling model in the premium segment, making it the leader for the full quarter, surpassing Samsung and Apple
Other models that did well during the quarter were the Realme 1, Honor 9 lite, OPPO F7 and Redmi 5.

Exhibit 3: India Top Five Smartphone Models Market Share – Q2 2018

Source: Counterpoint Research Market Monitor Q2 2018

The comprehensive and in-depth Q2 2018 Market Monitor is available for subscribing clients. Please feel free to contact us at press(at)counterpointresearch.com for further questions regarding our in-depth latest research, insights or press enquiries.

The Market Monitor research is based on sell-in (shipments) estimates based on vendor’s IR results, vendor polling triangulated with sell-through (sales), supply chain checks and secondary research.

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