india smartphone Archives

‘Made in India’ Smartphone Shipments Decline 8% YoY in Q3 2022 Due to Fall in Local Demand

OPPO led the ‘Made in India’ smartphone shipments with a 24% share, followed by Samsung.
Bharat FIH remained the top EMS player in terms of smartphone shipments.
Among Indian players, Dixon emerged as the top smartphone EMS provider.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – December 27, 2022

‘Made in India’ smartphone shipments declined 8% YoY in Q3 2022 (July-September) to reach over 52 million units, according to the latest research from Counterpoint’s Made in India service. This is the first decline reported this year. Economic headwinds that led to a decline in consumer demand, and market uncertainties due to geopolitics were the prime reasons for the contraction.

Commenting on the local manufacturing ecosystem, Senior Research Analyst Prachir Singh said, “The Made in India smartphone shipments declined in Q3 2022 as compared to Q3 2021. Two major forces impacted the growth of such smartphone shipments. First, the decline in consumer demand, especially in the entry-level segment, due to the negative macroeconomic indicators. Second, the high channel inventory at the start of the quarter also impacted the manufacturing during the quarter. The country’s smartphone manufacturing ecosystem continues to grow with almost 63% of such shipments coming from in-house manufacturers and 37% from third-party EMS players. OPPO led the Made in India smartphone shipments in Q3 with a 24% share, followed by Samsung and vivo. BYD and Lava were the fastest-growing manufacturers in terms of smartphone shipments. Further, we will continue to see PLI disbursements in subsequent quarters, which will add to the local manufacturing landscape. Overall, the manufacturing trend is witnessing an upward trajectory with multiple partnerships happening in recent months, like the ones between Tata Group and Wistron and between Foxconn and Vedanta.”

Source: Counterpoint Made in India Research, Q3 2022
Note: Figures may not add up to 100% due to rounding

On the Indian government’s focus, Research Analyst Priya Joseph said, “On the regulatory front, despite the adverse global climate, the Indian smartphone market has remained resilient. The government’s efforts to bring about a supply chain shift and make India a manufacturing hub with constant policy interventions in the form of PLI schemes has helped the country to attract major global players across the value chain. Further, the government is actively pursuing the target of expanding the local value addition from the present 17-18% to 25% in the near future.”

Looking ahead, we believe that the manufacturing volumes will grow with an increasing focus of the OEMs to export to other countries. Increasing local value addition and exports have been the main focus points of the government under the ‘Make in India’ scheme.

Notes:

OPPO manufactures smartphones for OPPO, realme and OnePlus.
Bharat FIH manufactures smartphones for Xiaomi.
Dixon Technologies manufactures smartphones for Samsung.
Dixon Technologies’ share does not include Padget Electronics.

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:

Prachir Singh

Priya Joseph

Tarun Pathak

Follow Counterpoint Research

India Smartphone Market Continues to Remain Under Pressure, Modest Growth Expected in 2023

India’s smartphone shipments are expected to fall 5% YoY in 2022, dipping for the second time in the last three years.
Weak demand in entry-level segments hit sales even as the premium segment continued to grow.
The market is expected to grow by 10% in 2023 to reach 175 million units.

New Delhi, London, Hong Kong, Seoul, Beijing, San Diego, Buenos Aires – December 22, 2022

India’s smartphone shipments are expected to fall 5% YoY in 2022, according to Counterpoint Research’s latest projections. The inflationary macro environment, component shortages and rise in their prices, and wild cards like the Russia-Ukraine war and weakness in the overall global economy affected the smartphone market globally, including in India.

The Indian market has seen a steady rise in the last five years barring the COVID-19-hit 2020 to grow 1.5 times from 2016 to 2021. The market is projected to grow 10% in 2023 to reach 175 million units.

What happened in 2022?

The market failed to meet expectations in 2022. It started the year with component shortages. But even as the situation resolved on the supply side by the first half of 2022, the consumer demand did not improve as expected. The weak demand was especially felt in the entry and mid-level price bands owing to the increase in retail prices due to the rise in component prices and inflationary macro environment. The premium market continued to grow in 2022 with the >INR 30,000 ($400) price band reaching a new high. The continued premiumization of the market is the main reason why it saw positive revenue growth with the highest-ever average selling price (ASP) of close to INR 20,000 ($250).

Source: Counterpoint Research India Quarterly Handset Outlook, Q3 2022

Why will the market rebound in 2023?

High installed base: India currently has more than 600 million smartphone users, a number which is expected to grow over time as more feature phone users migrate to smartphones. The replacement demand from these users will drive the market in 2023 and beyond.
5G push: 5G networks are now live in multiple cities. Even though 5G smartphones have been making news in the market, they will account for just one-third of the market in 2022. 5G has been high on Indian consumers’ wish lists and with 5G networks now being available, many consumers will replace their 4G smartphones in 2023.
Government purchase of smartphones to push sales: The state of Rajasthan has rolled out a tender for the acquisition and distribution of smartphones among women in 2023.
Improvement in macro environment: We also expect the inflationary macro environment to get better next year. Therefore, consumers who postponed buying a new phone in 2022 will be able to buy a new one in 2023.

Long-term outlook remains positive

Despite the dip in 2022, India’s smartphone market has been resilient and performed better than many other regions. A large installed base, feature phone-to-smartphone migration, local smartphone production, development of supply chain and the emergence of newer use cases will continue to grow the market in the longer term.

Background

Analyst Contacts

Ankit Malhotra

Glance Active User Base in India Reaches All-time High of 189 Million in Q2 2022

6 million active users were added to Glance’s lockscreen platform in Q2 2022.
Glance launched the Hyperlive content format to boost engagement.
Glance’s partnership with realme continued to drive growth in the active user base.

New Delhi, London, San Diego, Buenos Aires, Hong Kong, Beijing, Seoul – October 13, 2022

Leading lockscreen platform Glance’s active user base in India grew to its all-time high in Q2 2022 to reach 189 million, according to Counterpoint Research’s Quarterly Mobile Application Tracker. The platform witnessed a user base growth of 25% YoY during the quarter, adding 38.5 million users. Compared to the previous quarter, 6 million new users were added. The growth was driven largely by partnerships with smartphone manufacturers, as well as new content formats aimed at driving user engagement.

Glance provides content to Android-based smartphone users on their lockscreens. With the first screen touch, users have the latest updates based on their preferred genre and language. The lockscreen platform provides personalized content via video stories, live-streaming and other modes. It uses artificial intelligence (AI) to understand consumers’ preferences. The content on Glance’s lockscreen platform is available in multiple languages and covers categories like current affairs, entertainment, technology, sports, fashion and travel.

Glance launched Hyperlive content on its platform during the quarter. Hyperlive is a live format that enables users to enjoy two-way interaction with some of their favorite celebrities or creators. Hyperlive holds the potential to further boost active engagement in the coming quarters.

Glance Active User Base, Q2 2021-Q2 2022 (in millions)

Source: Counterpoint Research Quarterly Mobile Application Tracker, Q2 2022

Commenting on Glance’s lockscreen growth, Research Analyst Arushi Chawla said, “The partnership with realme, which is the third-largest smartphone brand in India, continued to drive growth in the Glance active user base in Q2 2022. Glance has become a benchmark for lockscreen innovation for Android phone users. Major OTT platforms such as Netflix, Sony Music and Warner Music have also been utilizing the Glance lockscreen platform to connect with audiences for new movies, shows, and music releases.”

In Q2 2022, Glance hosted Glance Live Fest, a live interactive festival on the smartphone lockscreen. In addition, considering the popularity of cricket among the Indian population, Glance’s lockscreen platform has provided the fans with an all-new way to watch and interact with some of their favorite IPL teams. For Bollywood fans, Glance’s lockscreen platform often schedules live sessions with stars like Rajkumar Rao, Kareena Kapoor, and Rana Daggubati. Glance has also expanded to the smart TV segment by announcing the launch of the Glance TV platform. Glance TV will be a live interactive content platform available on Android smart TV home screens.

Chawla added, “Glance’s lockscreen platform is present across different genres and local languages, and has tied up with top Android smartphone brands. It is now expanding its horizons by launching Glance TV. Besides, Glance is also expanding and strengthening its geographical footprint. Along with India, Glance is growing its presence in Indonesia and other parts of Southeast Asia, while plans are being firmed up for high-potential markets like the US and Latin America.”

Methodology

Glance’s mobile application presence is calculated from our panel database of over a million smartphone active users. Model-level Glance penetration data and active user ratios were extrapolated to our monthly smartphone installed base data using various parameters such as brand, model and price band to predict Glance’s active user base. We expect the results to have a statistical precision of +/- 5% at the confidence interval of 90%.

This is a sponsored survey to better understand the brand’s presence in the Indian smartphone market.

Disclaimer

Counterpoint Technology Market Research All Rights Reserved. Reproduction of this publication in any form without prior written permission is forbidden. The information contained herein has been obtained from sources believed to be reliable. However, we disclaim all warranties as to the accuracy and completeness of this report. Counterpoint shall have no liability for errors, omissions, or inadequacies in the information contained and any direct/indirect damages. All opinions and estimates herein are subject to change without notice.

Analyst Contacts

Tarun Pathak

Arushi Chawla

Counterpoint Research

Consumption of Indian Semiconductor Components to Climb to $300-Billion Cumulative Revenue During 2021-2026

Mobile and wearables, IT and industrial segments currently contribute around 80% of the semiconductor revenues in India.
‘Make in India’ and Production Linked Incentive schemes will boost local sourcing of semi-components in the coming years.
Further policy reforms and building of a semiconductor ecosystem will reduce reliance on imports going forward.

New Delhi, Seoul, San Diego, Buenos Aires, London, Hong Kong, Beijing – August 16, 2022

India’s semiconductor component market will see its cumulative revenues climb to $300 billion during 2021-2026, according to the ‘India Semiconductor Market Report, 2019-2026’, a joint research by the India Electronics & Semiconductor Association (IESA) and Counterpoint Research. IESA is the premier industry body representing the ESDM and intelligent electronics industry in India. It acts as a trusted knowledge partner to the central and state governments, helping devise policies and incentives for the industry to attract investments into India. The comprehensive research on India’s semiconductor market focuses on the bottom-up modelling unit as well as revenue demand for semiconductor components covering the entire Bill of Materials (BoM) of multiple end-device and equipment categories across seven major sectors in India – Mobile and Wearables, Information Technology, Automotive, Industrial, Telecom, Aerospace and Defence, and Consumer Electronics – from domestic consumption as well as export perspective. The report provides detailed recommendations, potential policies and a framework for building a robust domestic semiconductor ecosystem to boost local production and sourcing.

Source: India Semiconductor Market Report

IESA CEO and President Krishna Moorthy said, “Before the end of this decade, there will be nothing that will not be touched by electronics and the ubiquitous ‘chip’. Be it fighting carbon emissions, renewable energy, food safety, or healthcare, the semiconductor chip will be all-pervasive. Imagine this – all children all over India get educated in virtual classrooms by the country’s best teachers. The chip makes it possible. Again, imagine everyone in the country gets quality healthcare and diagnostics done remotely. Medicines are delivered by drones at your doorstep, even in the farthest villages of India. The chip will make it possible, and we will see this in front of our eyes very soon. Let us make India the semiconductor nation.”

India is poised to be the second largest market in the world from the perspective of scale and growing demand for semiconductor components across several industries and applications. This demand is being pushed by the increasing pace of digital transformation among the country’s consumers, enterprises and public sector through the adoption of new technologies, from advanced connectivity to content consumption to the cloud. These cover smartphones, PCs, wearables, cloud data centers, Industry 4.0 applications, IoT, smart mobility, and advanced telecom and public utility infrastructure.

Mobile and wearables, IT and industrial sectors alone contributed to almost 80% of the semiconductor revenues in India in 2021. Commenting on the mobile and wearables industry, Research Director at Counterpoint Research Tarun Pathak said, “The mobile and wearables sector was the biggest contributor to India’s semiconductor industry in 2021. Mobile devices have become a primary tool for internet connectivity given that broadband and laptop/PC penetration remains low. In the last five years, the ‘consumer digital transformation’ has accelerated with the availability of cheap mobile internet, and mobile devices have connected a big part of the Indian population. Also, the gradual shift from feature phones to smartphones has been generating increased proportions of advanced logic processors, memory, integrated controllers, sensors and other components. This will continue to drive the value of the semiconductor content in smartphones, which is still an under-penetrated segment in India, aided by the rise of wearables such as smartwatch and TWS.”

Commenting on the potential opportunity in the mid-to-long term, Counterpoint Research Vice President Neil Shah said, “The next big boom for semiconductor components will come from across sectors. However, the telecom sector with the advent of 5G and fiber network rollout will be a key catalyst in boosting the semiconductor components consumption. This consumption will not only come from the advanced semiconductor-heavy 5G and FTTH network infrastructure equipment, which will contribute to more than 14% of the total semiconductor consumption in 2026, but also from the highly capable AI-driven 5G endpoints, from smartphones, tablets, PCs, connected cars, industrial robotics to private networks. Also, ongoing efforts to embrace cleaner and greener vehicles (electric vehicles) will provide an impetus for the automobile industry to adopt advanced technologies, which in turn will boost the demand for semiconductor components in India. Consumer electronics, industrial, and mobile and wearables will be the other key industries for the growth of the semiconductor market in India. Further, this semiconductor demand will not only be driven by domestic consumption but also by the growing share of exports.”

In 2021, India’s end equipment market stood at $119 billion in terms of revenue. It is expected to grow at a CAGR of 19% from 2021 to 2026. The Electronic System Design and Manufacturing (ESDM) sector in India will play a major role in the country’s overall growth, from sourcing components to design manufacturing. The semiconductor industry in India is on a path to immense growth over the next few years to help India’s economy reach the next stage for both domestic consumption and exports. While the country is becoming one of the largest consumers of electronic and semiconductor components, most components are imported, offering limited economic opportunities for the country. Currently, only 9% of this semiconductor requirement is met locally.

The demand for semiconductors is growing astronomically worldwide. However, multiple factors, including the pandemic and global geopolitical events, have heavily impacted the manufacturing of the components. This research is aimed at analyzing the market situation, manufacturing supply chain, and prospects for India as a premier manufacturing destination not only for finished goods but also for semiconductor components. While the local production is currently low, India has immense potential to become a leading semiconductor component supplier in the coming years, provided the talent pool and resources are utilized correctly. The government’s initiatives, from ‘Make in India’ to Production Linked Incentive (PLI), will help accelerate this journey but will need some additional reforms to increase local manufacturing and sourcing of semiconductor components. If this is done, the semiconductor market can be a major contributor to economic growth, and India’s push to become a $5-trillion economy.

IESA Vice President Sunil G Acharya said, “Semiconductors will be inside everything intelligent. India is becoming a tech-centered growth story with advancing technologies and innovation being integral to democratizing access. The semiconductor study will play a major role in India’s growth. A large young population combined with an increased focus on digitalization, advancing skill levels, growing manufacturing and foreign investment traction will take India’s semiconductor industry to the next level in the coming years.”

Commenting on the current stage of local manufacturing, Research Analyst at Counterpoint Research Shivani Parashar said, “To achieve India’s semiconductor vision, a robust and indigenous technology ecosystem will be required to build on the existing policy foundation through PLI-like schemes. Renewed focus is needed for incentivizing the country’s design ecosystem in a manner that helps create a stronger foundation for design-led manufacturing and allied sectors, be it for local consumption or exports. This strategy will transform the landscape in the coming years to drive local sourcing trends. The share of local sourcing is expected to grow to over 17% by 2026. This translates into a six-fold rise in potential locally-sourced semiconductor revenues.”

IESA Vice President (Public Policy, Government and Corporate Relations) Anurag Awasthi said, “From safety razors to space shuttles, everything will be powered by the chip. Let us ensure our chips are not down in the world of tomorrow! Keeping this as an aim, MeitY is working further towards making India one of the next technology powerhouses, especially in a pandemic-struck world where there has been a realization of the need for more flexible and diverse supply chain ecosystems. The government is keen to leverage India’s existing strengths in mobile manufacturing, software and start-up hubs for other critical industries in the ESDM sector.”

Research Analyst at Counterpoint Research Priya Joseph added, “Government policies including PLI, New Electronics Policy, 2019, Electronics Manufacturing Clusters, and Scheme for Promotion of manufacturing of Electronic Components and Semiconductors (SPECS) are all being equipped to boost domestic design, manufacturing and assembly. To help drive more initiatives under the themes of Make in India and Digital India, the government, in its last budget, pushed the total allocation to $936.2 million. This step not only aims to incentivize India-based manufacturing but also catalyze investments in the sector to support job creation, ease of doing business, import reduction and export promotion.”

To access the full report, please contact IESA at the coordinates below.

Vine Sophia Email: sophia@iesaonline.org

Feel free to contact us at press(at)counterpointresearch.com for questions regarding semiconductor research and insights.

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:

Shivani Parashar

Neil Shah

Tarun Pathak

Priya Joseph

Counterpoint Research

press(at)counterpointresearch.com

Related Reports:

Glance added 40 million new users in past 4 quarters, active user base grew 30% YoY in Q1 2022

Glance’s active user base reached 183 million in Q1 2022, adding about 10 million users during the quarter.
The recent partnership with realme was a major growth driver for Glance in Q1 2022
With a presence in India, Indonesia, and parts of Southeast Asia, Glance is now expanding to other international markets

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – July 11, 2022

Glance’s active user base in India experienced 30% YoY growth to reach 183 million in Q1 2022 according to Counterpoint Research’s Quarterly Mobile Application Tracker. Glance added more than 10 million users in the first quarter of 2022, a sequential growth of 6%.

Leading smartphone players like Xiaomi (including Poco), Samsung, OPPO, Vivo and realme, which collectively account for more than three-fourths of the Indian smartphone market, all currently have Glance as their lock screen platform.

Glance Active User Base, Q1 2021 to Q1 2022

Source Counterpoint Research Quarterly Mobile Application Tracker, Q1 2022

With growing digitalization, both content creation and content consumption are moving at a fast pace. The Glance lock screen content platform provides seamless content discovery at the first touch of the smartphone. With a wide range of multi-lingual content across sports, current affairs, fashion, travel, food, commerce, and entertainment, it serves the specific interests of smartphone users from different demographics.

Glance, which is present in India, Indonesia and parts of Southeast Asia, is focussing heavily on expansion in existing as well as new markets. Together with its recent partnership with realme, in addition to the existing ones such as Xiaomi, Vivo and oppo, Glance has announced several collaboration projects with key Indonesian brands, publishers, and creators as part of its ‘Indonesia First’ strategy. It is also reportedly planning to launch in other geographies such as Latin America and USA – markets that will provide substantial additional opportunities.

Commenting on the factors contributing to Glance lock screen growth, Research Analyst Arushi Chawla said “Glance lock screen coming as a preinstalled application in smartphones has been the primary and successful way of getting users on-board with the platform. However, the platform’s offerings and growing traction around Glance live entertainment and commerce are all helping Glance improve the user experience and user engagement to go beyond content absorption and ensure a unique interaction. Further, the Glance platform’s AI capabilities help with relevant content discovery and ensure platform stickiness.”

Chawla added, “With the recent partnership with realme, Glance now covers all the top 5 smartphone players in India – Xiaomi, Samsung, realme, Vivo and OPPO, which combined account for more than 75% of the Indian smartphone market. This was the major reason for the rise in Glance’s active user base during Q1 2022. The partnership with realme will help Glance’s installed base continue to grow at a fast pace. And with Glance also going live on the Reliance Jio smartphone and its plans to develop new geographic markets, it will likely get a further boost in growth”.

Starting its journey in 2019, Glance has created an unmatched positioning by pioneering the use of lock screen as an asset for content discovery by bringing infotainment and trending content available 24/7 as a differentiator. Now other smartphone premium brands like Apple are showing interest in improving the lock screen experience

Methodology

Glance’s mobile application presence is calculated from our panel database of over a million smartphone active users. Model-level Glance penetration data and active user ratios were extrapolated to our monthly smartphone installed base data using various parameters such as brand, model, and price band to predict Glance’s active user base. We expect the results to have a statistical precision of +/- 5% at the confidence interval of 90%.

This is a sponsored survey to better understand the brand’s presence in the Indian smartphone market.

Disclaimer

Analyst Contacts

Tarun Pathak

Arushi Chawla

Counterpoint Research

OPPO Leads ‘Made in India’ Smartphone Shipments in Q1 2022; Local Smartphone Manufacturing Volume Grows 7% YoY

OPPO, which also makes realme and OnePlus smartphones in the country, led the ‘Made in India’ shipments with a 22% YoY growth.
Samsung took the second spot in terms of units but was the top manufacturer in terms of value.
Bharat FIH was the top third-party EMS provider, followed by Dixon Technologies.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – June 16, 2022

‘Made in India’ smartphone shipments grew 7% YoY in Q1 2022 to reach over 48 million units, according to the latest research from Counterpoint’s Make in India service. The local smartphone manufacturing ecosystem stayed resilient amid global component shortages.

Commenting on the local manufacturing ecosystem, Senior Research Analyst Prachir Singh said, “Smartphone manufacturing is increasing in India. In 2021, the shipments of ‘Made in India’ smartphones crossed 190 million units. The increasing smartphone demand in India as well as increasing exports are the major reasons for the continued growth. Support has also come from the Indian government’s various initiatives to increase local manufacturing. However, the manufacturing of feature phones declined 41% YoY in Q1 2022 due to falling demand for the past few quarters.”

On the manufacturing landscape and strategies, Singh said, “In the smartphone segment, the third-party EMS (electronic manufacturing services) providers captured 42% share in local manufacturing, registering 4% YoY growth in terms of shipments. Bharat FIH was the top EMS provider in Q1 2022, followed by Dixon Technologies. However, in-house manufacturing capabilities have also grown. In-house smartphone manufacturing share crossed 58% during the quarter. OPPO led the ‘Made in India’ smartphone shipments with a 22% share, followed closely by Samsung at 21%. In the feature phone segment, however, EMS’ share crossed 68% in Q1 2022. Lava led the ‘Made in India’ feature phone shipments with a 21% share. Among the third-party EMS providers, Flex, Bharat FIH and Dixon Technologies led the feature phone segment.”

On the Indian government’s initiatives, Research Analyst Priya Joseph said, “The government’s focus has been to make India a manufacturing hub. It has taken a lot of initiatives in this direction. The Production Linked Incentive (PLI) scheme for mobile handsets proved to be an accelerator for local manufacturing. Similar PLI schemes have been introduced by the government in other strategic sectors, such as solar, semiconductors, automotive and electronic products. In the current times of uncertainties triggered by the pandemic, war and other factors, the government feels it is important to have a resilient economy that can sustain such shocks. Signing up for the recent Indo-Pacific Economic Framework for Prosperity (IPEF) is one such example of the government’s intention to make clear its goal of becoming the next tech hub.”

Going forward, we believe India’s handset manufacturing will grow 4% YoY in 2022. Also, the increasing local value addition will drive the idea of “Aatmanirbhar Bharat” (Self-reliant India). The government is focusing a lot on increasing localization, and with the Semiconductor PLI, it aims to make India a prominent destination for semiconductor and electronics manufacturing.

Note:

Oppo manufactures smartphones for Oppo, realme and OnePlus
Bharat FIH manufactures smartphones for Xiaomi
Dixon Technologies manufactures smartphones for Samsung

Background

Analyst Contacts:

Prachir Singh

Priya Joseph

Tarun Pathak

Follow Counterpoint Research

Glance Active User Base Surges To 173 million In Q4 2021; Further Boost Expected In 2022 From New OEM Deals

Glance active users grew 24% from 140 million in Q1 2021 to reach 173 million in Q4 2021
Two-thirds of newly launched smartphones in Q4 2021 had Glance lockscreen platform preinstalled
The company entered agreements with realme and Jio Platforms for integration of its lockscreen platform with their phones
The $150-$250 price band continued to be the largest for Glance active users

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – March 17, 2021

Glance’s active user base in India surged to 173 million in Q4 2021, according to Counterpoint Research’s Quarterly Mobile Application Tracker. The platform added 33 million total active users to grow 24% from Q1 2021 to Q4 2021.

Exhibit 1: Glance Active User Base, Q1 to Q4 2021 (in millions)

Source: Counterpoint Research Quarterly Mobile Application Tracker, Q4 2021

Commenting on Glance’s performance, Research Analyst Arushi Chawla said, “Pioneering the use of the smartphone lockscreen, Glance has become the first touchpoint for users interacting with their devices, removing barriers such as search and multiple app downloads. This has uniquely positioned Glance for growth driven by high engagement. In addition, the AI capabilities of Glance have been helping users discover relevant content, further increasing stickiness to the platform.”

On the content strategy, Chawla noted, “Glance has been diversifying across genres and languages. Glance has accumulated content from top creators and developers across categories including sports, fashion, gaming, fitness, commerce and entertainment to enhance the experience for users. Glance has also made a foray into the live interactive content category, further diversifying its offerings. This is becoming even more relevant, as content consumption and creation on smartphones are on the rise.”

In terms of OEMs, Glance has been expanding its partnerships with top brands and devices across price segments. In October 2021, Glance partnered with the third-largest smartphone brand in India – realme. Further, as of Q4 2021, two-thirds of the newly-launched smartphones in India had the Glance lockscreen platform preinstalled.

In terms of share across price bands, $150-$250 continued to be the largest segment for Glance. Close to two-thirds of Glance’s active user base falls in the $150 and above price band. The average selling price of smartphones in India is increasing. Penetration in the higher price segments positions Glance well to capture the increasing replacement demand in the Indian smartphone market in the future.

Exhibit 2: Price Band Split for Glance Active Users, Q4 2021

Source: Counterpoint Research Quarterly Mobile Application Tracker, Q4 2021

Looking forward, Glance will continue to expand its OEM partnerships in India. It has signed an agreement to raise $200 million from Jio Platforms. Concurrent with this funding deal, Glance has entered a partnership with Reliance Retail Ventures under which Glance’s lockscreen platform’ will be integrated into Jio’s Pragati OS (the JioPhone Next operating system). This will further expand its market reach. Glance will also seek to strengthen user touchpoints and expand to key international markets beyond Asia.

Methodology

Glance’s mobile application presence is calculated from our panel database of over a million smartphone active users. Model-level Glance penetration data and active user ratios were extrapolated to our monthly smartphone installed base data using various parameters such as brand, model, and price band to predict Glance’s active user base. We expect the results to have a statistical precision of +/- 5% at the confidence interval of 90%.

This is a sponsored survey to better understand the brand’s presence in the Indian smartphone market.

Disclaimer

Analyst Contacts:

Arushi Chawla

Varun Mishra

Counterpoint Research

India Smartphone Shipments Cross 52 Million Units in Q3 2021 as Brands Prepare for Festive Season

Xiaomi led the market in Q3 2021 with a 22% shipment share. Four out of the top five models during the quarter were from Xiaomi
Samsung led the mid-to upper-tier price segment (INR 10,000 – INR 30,000) with a 25% market share.
OnePlus registered its highest ever shipments in India. Nord series cumulative shipments crossed 3 million units.
5G smartphone shipments crossed the 10-million mark for the first time, vivo leads.
realme led the 5G segment in the sub-INR 20,000 price tier with the highest ever shipments.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – October 28, 2021

India’s smartphone shipments declined 2% YoY to reach over 52 million units in Q3 2021, according to the latest research from Counterpoint’s Market Monitor service. The decline can be attributed to higher pent-up demand last year due to COVID-19. The smartphone market continues to show signs of resiliency and the quarterly numbers would have been even higher if not for the component shortages that escalated during the quarter.

Commenting on the market dynamics, Senior Research Analyst Prachir Singh said, “Smartphone shipments maintained a strong momentum after the second COVID-19 wave. The consumer demand outweighed the supply due to the high pent-up demand. Keeping in mind the global component shortage, most of the brands were aggressively working to secure enough stock for the festive season. The demand in the online channels remained strong and reached highest-ever shipments in Q3 2021.”

Commenting on the competitive landscape and brand strategies, Research Analyst Monika Sharma said, “Chinese brands captured 74% share in the Indian smartphone market in Q3 2021. Xiaomi led the market with a 22% share driven by the Redmi 9 series and Redmi Note 10 series. The Redmi 9A remained the top-selling smartphone model during Q3 2021 as well. Samsung captured the second spot with a 19% share. The online-focused Galaxy M series and F series drove its shipments along with the newly launched Galaxy A series models which saw high demand in the offline channels. Samsung is focusing on providing maximum 5G bands in its 5G models to differentiate itself from the competition. Strong volumes of vivo’s Y-series and V-series smartphones led the brand to capture the third spot with a 15% share. realme captured the fourth spot with a 14% share driven by its budget segment C series. OPPO took the fifth spot with 10% share.”

Source: Counterpoint Research Market Monitor, Q3 2021

Note: Xiaomi’s share includes the POCO brand

India’s overall mobile handset market declined 5% YoY in Q3 2021. Samsung regained the top position in the handset market, capturing an 18% share in Q3 2021. The feature phone market declined 12% YoY in Q3 2021 as the migration to smartphones continued. itel led the feature phone market, taking 27% share followed by Lava, Nokia HMD and Samsung. itel has been leading the feature phone market for the last eight consecutive quarters.

Source: Counterpoint Research Market Monitor, Q3 2021

Note: Xiaomi’s share includes the POCO brand

Market Summary:

Xiaomi retained the top position in India’s smartphone market with a 22% share driven by the Redmi 9 series and Redmi Note 10 series. Xiaomi captured the top four positions in the list of best-selling models with its Redmi 9A, Redmi 9 Power, Redmi Note 10 and Redmi 9 models. All these four models clocked more than a million shipments. The Redmi 9A has been the best-selling model in 2021 till date. Xiaomi reached its highest ever shipments in the premium segment in Q3 2021 driven by Mi 11x series.

Samsung remained the second-largest smartphone brand in India with its shipments registering a 19% share. The brand captured the second position in the 5G segment, driven by the Galaxy M42, M52, A22 and A52s models. Samsung was the top smartphone brand in the INR 10,000 – INR 30,000 band. The brand also led the 5G multiple-band support segment (more than five bands) with a 38% share. Newly launched Galaxy Z Fold 3 and Z Flip 3 had a strong start in India. We are expecting the fold series is likely to surpass the lifetime revenue contribution of any Galaxy note series in the past and help Samsung to grow faster in the Ultra-premium segment.

vivo held the third position in Q3 2021 with a 15% share. It became the top 5G smartphone brand for the first time in Q3 2021, while remaining the top offline smartphone player as well. vivo registered its highest ever shipments in the premium segment driven by the X60, V21 and iQOO series. The brand reached its highest ever ASP (average selling price), which can be attributed to the increased focus on the premium segment through the V-series and iQOO-series smartphones.

realme captured the fourth position in Q3 2021 with a 14% share. It was the top 5G smartphone brand in the sub-INR 20,000 price band. The realme 8 5G and realme 8s 5G were the top two 5G smartphone models in the sub-INR 20,000 price band and captured almost half of the market.

OPPO took the fifth position in Q3 2021 with a 10% share. The OPPO A54 was the top smartphone model in the INR 10,000 – INR 20,000 price band. The brand captured the third spot in this price band. The OPPO F19 series and Reno 6 series led the brand in capturing the fourth position in the INR 20,000 – INR 30,000 band.

Transsion Group brands (itel, Infinix and TECNO) registered 72% YoY growth, which is the second highest among top brands, and captured a 9% share collectively in the overall India smartphone market. itel remained the top smartphone brand in the sub-INR 6,000 price band, capturing more than 60% of the segment. Also, in the sub-INR 8,000 price band, Transsion brands led the market with more than 30% share. Transsion brands captured the second position in the sub-INR 10,000 band for the first time. itel has been leading the feature phone market for the last eight consecutive quarters.

Apple was the fastest growing brand in Q3 2021 with 212% YoY growth and led the premium smartphone market (> INR 30,000) with a 44% share. The brand maintained its leading position in the ultra-premium segment (> INR 45,000 or ~$650) with a 74% share. Strong demand for the iPhone 12 and iPhone 11 were the major factors in Apple’s growth. Apple became the top 5G smartphone brand in the premium segment for the first time.

OnePlus grew 55% YoY in Q3 2021 driven by the OnePlus Nord Series. During the quarter, OnePlus also registered its highest ever shipments in India. The brand captured the second spot in the premium segment (> INR 30,000). OnePlus took two spots in the list of top 5G smartphones in the premium segment. The newly launched OnePlus Nord 2 5G and Nord CE 5G were the driving factors in OnePlus growth. Nord series cumulative shipments cross 3 million units.

5G smartphone shipments crossed the 10-million mark for the first time in Q3 2021. 5G with multiple band support (>5 bands) captured 50% of the 5G smartphone market for the first time. vivo became the top 5G smartphone brand for the first time. It was followed by Samsung, OnePlus and realme.

Online channels captured around 55% of the smartphone shipments during the quarter.

The comprehensive and in-depth Q3 2021 Market Monitor is available for subscribing clients. Feel free to contact us at press(at)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 share for World, US, China and India.

Background:

Analyst Contacts:

Prachir Singh

Monika Sharma

Tarun Pathak

Karn Chauhan

Follow Counterpoint Research

Glance Active User Base in India Crosses 150-mn Milestone

London, San Diego, Buenos Aires, New Delhi, Hong Kong, Beijing, Seoul – September 21, 2021

Glance, a leading lockscreen content platform owned by InMobi Group, achieved the milestone of 150 million active users in India in Q2 2021, according to Counterpoint Research’s Quarterly Mobile Application Tracker. With 151 million active users, Glance grew 8% QoQ in Q2 2021. One in every four Indian smartphone users is now active on the Glance platform, which offers an interactive lockscreen experience to Android smartphone users.

Commenting on the development, Research Analyst Arushi Chawla said, “India is a mobile-first country, with over 90% of the internet users accessing it from a smartphone. As the overall smartphone market is maturing and consolidating, with top OEMs capturing most of the market, it is also a challenge to maintain hardware differentiation when the form factors remain similar. In such a scenario, the long-term value creation will depend more on delivering differentiation through over-the-top (OTT) services. Therefore, Glance, with its presence in more than half of the current user base of the top four smartphone brands in India (Q2 2021), holds a vital role.”

Exhibit 1: Glance Active User Base, Q1 2021 vs Q2 2021

Source: Counterpoint Research Quarterly Mobile Application Tracker, Q2 2021

Glance, coming as a pre-installed lockscreen application, provides frictionless onboarding to new smartphone users. Besides, it continues to devise engaging ways to create stickiness to its platform:

Glance is progressively adding a variety of engaging content, like live, interactive broadcasting.
One of the core strategies of Glance is to support multiple regional languages. Glance eases the content discovery and absorption for a larger user base by offering eight Indian regional languages.
With the use of ML (Machine Learning), Glance provides personalization of content across categories, including fashion, entertainment, sports, news, travel, tech, and more. Curated content and effective editorial control further make the platform clickbait-free.

The change in content consumption habit from search to discovery has made the activity more platform-driven. Therefore, the overall experience of an online content consumer now depends on content availability, quality and personalization. Glance has succeeded in matching this new trend of content discovery with its offering.

Exhibit 2: Price Band Split for Glance Active Users, Q2 2021

Source: Counterpoint Research Quarterly Mobile Application Tracker, Q2 2021

According to Counterpoint data, Glance continues to have a robust presence in the sub-$250 price band, which forms about 80% of its active user base. Further, more than one-tenth of the 5G smartphone installed base is equipped with the Glance platform, thus making it a future-ready test pad for the next phase of content innovation.

Senior Research Analyst Pavel Naiya said, “With the proliferation of 5G devices and the introduction of 5G network in India in the coming times, it will become more crucial for all hardware players to focus on content play for long-term survival. In this process, the $200-$400 price band will be the biggest segment in short- to mid-term smartphone growth. The strong presence of the Glance platform in the majority of active smartphones in this price band makes it a potential candidate for the OEMs for a long-term collaboration.”

Methodology:

Glance’s mobile application presence is calculated from our panel database of over a million smartphone active users. Model-level Glance penetration data and active user ratio were extrapolated to our monthly smartphone installed base data using various parameters such as brand, model and price band to predict Glance’s active user base. We expect the results to have a statistical precision of +/- 5% at the confidence interval of 90%.

This is a sponsored survey to better understand the brand’s presence in the Indian smartphone market.

Background:

Counterpoint Technology Market Research is a global research firm specializing in detailed industry analysis of the TMT sectors. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of over 15 years in high-tech industries.

Analyst Contacts:

Pavel Naiya

Arushi Chawla

Counterpoint Research

Feel free to contact us at press(at)counterpointresearch.com for questions regarding our latest research and insights, or for press enquiries.

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.

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.

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