Top

India Smartphone Market Set for Record Shipments in 2021

  • India’s smartphone market will reach 173 million shipments in 2021.
  • More than 100 million smartphones will be shipped in H2 2021.
  • 5G devices will make up 19% of the overall market.

India’s smartphone market shipments are set to hit a record high of 173 million units in 2021 at 14% YoY growth, according to Counterpoint Research’s India handset quarterly outlook. More than 100 million smartphones are expected to be shipped in H2 2021. The market has been experiencing strong consumer demand after the lifting of COVID-19 restrictions in June. The strong sales momentum will continue during the festive season from August to November.

The market has been experiencing a steady growth curve over the last five years to reach 158 million units in 2019. COVID-19 saw the market experiencing only a minor dip of 4% in 2020, showcasing its resilience as well as the emergence of smartphones in a more important role to cater to the pandemic-triggered need for digital communication and newer use cases. Even as the second COVID-19 wave hit the country in Q2 2021, the smartphone market bounced back faster than expected and registered its highest ever shipments in H1 2021.

As the number of COVID-19 cases remains under control and the vaccination program continues, the economy will bounce back and raise consumer confidence. The pent-up demand will also play a role, although its impact will be limited compared to last year as COVID-19 lockdowns were shorter this time around. The biggest factor pushing the market could be the launch of Reliance Jio’s low-cost Android phone JioPhone Next in September, which will enable migration of feature phone users to smartphones.

India Smartphone Market to Reach 173 Million Shipments in 2021

JioPhone Next to trigger feature phone-to-smartphone migration

India’s smartphone market opportunity is far bigger than what it seems to be. The country has a considerable installed base of 320 million feature phone users. Getting these feature phone users is the key to realizing the full potential of India’s smartphone opportunity. The JioPhone Next phone is expected to be priced below $75, a price point that hasn’t seen major activity in the last two years. If it works as expected, we might see the Indian market entering a period of hyper-growth.

5G smartphones to grow 8X in 2021

In 2020, 5G smartphones accounted for less than 3% of the market. But in 2021, the market for 5G devices will grow over eight times to reach 32 million units and make up 19% of the overall smartphone market. Intense competition among OEMs, availability of cheaper 5G chipsets and declining prices of 5G devices will lead to more 5G devices being pushed into the market. The average price of entry-level 5G devices has come down by 40% in the last 12 months. The cheapest phone with 5G now costs less than INR 15,000 (around $200). Preference for 5G devices is also high in India, with 21% of consumers claiming it is one of their top three priorities while purchasing their next phone.

Long-term outlook remains positive

India’s smartphone market is the second biggest market in the world after China. In 2020, the Indian market outperformed the North America, Latin America and Africa markets. Our outlook for India for the next five years remains positive, keeping in mind its 1.39-billion (and growing) population, upgrade of users from feature phone to smartphone, and future emergence of new use cases. The market is set to cross the 200-million mark in the next couple of years.

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

Related Posts

Ankit Malhotra is a Research Analyst based out of Gurgaon. His speciality lies in Smartphones and related technologies but is always looking to expand his horizon. Before joining Counterpoint, he worked as a Product Manager for Vivo.

Term of Use and Privacy Policy

Counterpoint Technology Market Research Limited

Registration

In order to access Counterpoint Technology Market Research Limited (Company or We hereafter) Web sites, you may be asked to complete a registration form. You are required to provide contact information which is used to enhance the user experience and determine whether you are a paid subscriber or not.
Personal Information When you register on we ask you for personal information. We use this information to provide you with the best advice and highest-quality service as well as with offers that we think are relevant to you. We may also contact you regarding a Web site problem or other customer service-related issues. We do not sell, share or rent personal information about you collected on Company Web sites.

How to unsubscribe and Termination

You may request to terminate your account or unsubscribe to any email subscriptions or mailing lists at any time. In accessing and using this Website, User agrees to comply with all applicable laws and agrees not to take any action that would compromise the security or viability of this Website. The Company may terminate User’s access to this Website at any time for any reason. The terms hereunder regarding Accuracy of Information and Third Party Rights shall survive termination.

Website Content and Copyright

This Website is the property of Counterpoint and is protected by international copyright law and conventions. We grant users the right to access and use the Website, so long as such use is for internal information purposes, and User does not alter, copy, disseminate, redistribute or republish any content or feature of this Website. User acknowledges that access to and use of this Website is subject to these TERMS OF USE and any expanded access or use must be approved in writing by the Company.
– Passwords are for user’s individual use
– Passwords may not be shared with others
– Users may not store documents in shared folders.
– Users may not redistribute documents to non-users unless otherwise stated in their contract terms.

Changes or Updates to the Website

The Company reserves the right to change, update or discontinue any aspect of this Website at any time without notice. Your continued use of the Website after any such change constitutes your agreement to these TERMS OF USE, as modified.
Accuracy of Information: While the information contained on this Website has been obtained from sources believed to be reliable, We disclaims all warranties as to the accuracy, completeness or adequacy of such information. User assumes sole responsibility for the use it makes of this Website to achieve his/her intended results.

Third Party Links: This Website may contain links to other third party websites, which are provided as additional resources for the convenience of Users. We do not endorse, sponsor or accept any responsibility for these third party websites, User agrees to direct any concerns relating to these third party websites to the relevant website administrator.

Cookies and Tracking

We may monitor how you use our Web sites. It is used solely for purposes of enabling us to provide you with a personalized Web site experience.
This data may also be used in the aggregate, to identify appropriate product offerings and subscription plans.
Cookies may be set in order to identify you and determine your access privileges. Cookies are simply identifiers. You have the ability to delete cookie files from your hard disk drive.