India's smartphone shipments grew 9% YoY to reach over 53 million units in Q3 2020, according to the latest research from Counterpoint's Market Monitor service. This is the highest-ever shipment in a quarter for the Indian smartphone market. The push from the brands coupled with the pent-up demand due to the lockdown and strong sales on online platforms led to this growth. Consumers are still preferring online platforms due to COVID-19 fears.
Commenting on the market dynamics, Senior Research Analyst Prachir Singh said, "The Indian smartphone market is on a recovery path as the lockdown restrictions have been relaxed. The market has shown a consistent growth for the last few months. It saw strong demand during the Independence Day period in August as major online platforms hosted massive sales. September has always been a high sell-in month as brands prepare for the upcoming festive season and push stock in the channels. Almost all the brands recorded growth compared to the last year. In terms of price bands, the mid-tier (INR 10,000 – INR 20,000) segment registered the highest growth and reached its highest ever share in a quarter. Due to the pandemic, Indian consumers have ended up saving on leisure activities. These savings are now being funnelled into smartphone purchases. Additionally, smartphones have become an integral part of consumers' lifestyle in this changing environment."
The Indian mobile handset market grew 8% YoY in Q3 2020 due to stronger consumer demand in the smartphone segment and stronger sales of feature phones. The feature phone market registered a 5% YoY growth in Q3 2020 with Itel being the number one brand followed by Samsung and Lava.
Commenting on the competitive landscape and brand strategies, Research Analyst Shilpi Jain said, "During the start of the quarter, we witnessed some anti-China consumer sentiments impacting sales of brands originating from China. However, these sentiments have subsided as consumers are weighing in different parameters during the purchase as well. The brands have been quite aggressive as they started building up inventory much ahead of the festive season. Focus on online channels has been increasing due to the COVID-19 situation. Even the offline-centric brands like vivo, OPPO and Itel are increasing their online presence due to the changing consumer behavior. Though online channels remain in focus, OEMs are also trying to leverage new opportunities in offline channels in Tier 2 and Tier 3 cities. In this regard, Xiaomi launched 'Mi store on Wheels', Samsung launched Galaxy M01 Core and vivo announced more retail discounts. Additionally, the brands are focussing on affordability by announcing cashbacks, promotions and offers on devices."
"On the manufacturing front, the Indian government is focusing on increasing the local value addition. Mobile handset production is likely to increase in the coming time as schemes like Production Linked Incentive (PLI) start to impact the overall electronic manufacturing ecosystem. Indian brands like Micromax and Lava are expected to leverage the government's 'Atma-Nirbhar Bharat' initiative and plan their comeback."
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