According to the International Data Corporation's (IDC) Quarterly Mobile Phone Tracker , India's smartphone market registered a sharp year-over-year (YoY) decline of (-50.6%) in the second quarter to 18.2 million units, as the country remained under lockdown through the first half of the quarter. Vendors faced major supply chain disruptions at the beginning of the quarter, and the shortage continued into the rest of the quarter as factories operated at partial capacity even after the lockdown was lifted. Components and parts remained at the ports waiting to be cleared, especially for China-based vendors. By June, sales increased mainly due to the pent-up demand from the lockdown period. However, purchases were mainly driven by availability rather than by choice.
The online channel registered a high market share of 44.8% but declined 39.9% YoY in unit terms due to lockdown restrictions on the delivery of electronics as well as severely limited stock for most of the quarter. "Many offline channel partners adopted new ways of marketing by reaching out to consumers through social media platforms, WhatsApp, references, etc., for doorstep demos and deliveries, as well as accepting contactless payments. However, these initiatives were limited to big and medium-size retail outlets in metros and Tier 1/2 cities, and was not able to arrest the steep annual decline of -56.8% for the offline channel," says Upasana Joshi, Associate Research Manager, Client Devices, IDC India.
The average selling price of smartphones remained flat at US$161 in 2Q20. Brands were forced to increase prices due to the GST hike in April and the depreciating rupee. The sub-US$200 segment reached a high of 84% share due to dampening consumer sentiment. The sub-US$100 segment increased to 29% share in 2Q20 from 20% a year ago. The Redmi 8A Dual alone contributed 33% of the shipments in this segment. The US$200-300 segment fell (-71.6%) YoY. The mid-premium segment of US$300
Feature phone shipments declined by (-69%) YoY to 10 million units in 2Q20, leading to a contribution of 35.5% to the overall mobile market, the lowest ever for this segment.
Samsung led the overall mobile phone market with a market share of 24.0%, followed by Xiaomi and vivo.
Note: The "Company" represents the current parent company (or holding company) for all brands owned and operated as subsidiary
Top 5 Smartphone Vendor Highlights
Navkendar Singh , Research Director, Client Devices & IPDS, IDC India mentions, "The ongoing supply chain challenges forced the brands to go for direct imports to meet the pent-up demand post-lockdown, especially in June, adding extra cost pressures. Further, this surge in demand is expected to continue throughout the first half of 3Q20 as well, requiring a steady supply of devices in the market. IDC expects the market to show signs of recovery in the second half of the year, as we approach the festive quarter with the majority of the consumers looking to buy low-end and mid-range devices. However, this will be dependent on brand marketing and channel initiatives, especially by eTailers during the festive sales. Brand initiatives around multi or hybrid channel strategies will also play a key role as offline partners and brands will be looking for pockets of growth in these crucial next few months."
