India’s smartphone market was down 1% YoY in HY22; Weaker demand is expected to hurt growth in 2022, says IDC

INDIA, August 8, 2022 – According to preliminary results from International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, 35 million smartphones were shipped in India in 2Q22 (April-June), representing a 3% year-on-year growth other (YoY), while the first half of 2022 fell 1% year-on-year to 71 million units. The second quarter of the year normally has strong seasonal demand compared to the first quarter, but lower consumer demand caused a 5% quarter-over-quarter (QT) decline.

“The main challenge in 2021 was supply constraints, which have eased considerably. However, the market is now facing a contraction in demand in 2022 due to rising inflation and rising fuel costs. inputs, leading to higher market prices. As a result, inventory cycles are increasing across brands and channels,” said Upasana Joshi, Research Manager, Client Devices, IDC India.

Main highlights of 2Q22:

• Online channel achieved 52% market share with 5% year-on-year growth; this should remain strong during the 2H22 festival season (July-December), with more promotions during sales events by e-commerce platforms. The offline channel saw steady growth of 1% after declining year-over-year for three consecutive quarters.

• ASP (Average Selling Price) has risen steadily quarter over quarter since 4Q20, reaching a new high of $213 in 2Q22, a 15% year-over-year growth.

• UNISOC’s share continued to rise, reaching 17% in 2Q22, while MediaTek’s share fell below 50%, not seen since 2020. Smartphone shipments and shares based on Qualcomm and Samsung have increased.

• 11 million 5G smartphones have been shipped with an ASP of USD 377. 51 million 5G smartphones have been shipped from 2020 to 1H22, and they are expected to cross 50% market share by 2023.

• The high-end $500+ segment was the highest growing segment with 83% year-on-year growth, contributing 6% of the market. Apple continued to dominate with 53% market share, followed by OnePlus (19%) and Samsung (15%). The mid-range $200-$300 segment accounted for 17% of the market, growing 21% year-over-year and continues to be the area of ​​focus for vendors with several model launches expected in the coming months. The biggest decline was in the sub-$100 segment, which fell to 17% market share from 22% a year ago.

“The supply of 5G smartphones is much better than 4G, which leads to higher ASPs but lower demand. The mass segment under US$200 saw fewer new launches. On top of that, inflationary stress is impacting consumer demand and is unlikely to ease anytime in 2H22. These factors will certainly prevent 2022 from being flat,” says Navkendar Singh, Associate Vice President, Devices Research, IDC India, South Asia & ANZ.

India smartphone market, top 5 companies, million shipments, market share, year-over-year growth, 2Q22 (preliminary)

Company

2Q22 shipping volumes

Market share in 2Q22

2Q21 shipping volumes

Market share in 2Q21

Change of unit from one year to the next (2Q22 on 2Q21)

Xiaomi

7.1

20.4%

9.8

29.2%

-28.2%

true me

6.1

17.5%

4.9

14.5%

23.7%

long live

5.9

16.9%

5.0

14.8%

17.4%

Samsung

5.7

16.3%

5.5

16.3%

2.7%

Oppo

4.0

11.5%

3.9

11.6%

2.3%

Others

6.1

17.5%

4.6

13.6%

32.1%

Total

34.7

100.0%

33.8

100.0%

2.9%

Source: IDC Worldwide Quarterly Mobile Phone Tracker, August 2022

Note: *“Company” represents the current parent company (or holding company) for all brands owned and operated as a subsidiary.

*Figures in tables/graphs are rounded.

Top 5 highlights of the smartphone company

Xiaomi continued to lead, but was the only supplier in the top ten with declining shipments (-28%) YoY in 2Q22. It faced supply constraints throughout 1H22, especially in the sub-$200 segment. But 2Q22 was the launch quarter for its Redmi 10 series, which together with Redmi 9A Sport and Redmi Note 11 accounted for 35% of its shipments. Xiaomi moved up to third place in the 5G segment, which contributed 25% of its overall shipments.

true me climbed to second place for the second time, with strong year-on-year growth of 24% (the highest among the top five vendors) in 2Q22. It cemented its second position in the online channel with a 23% share with affordable model offerings in the C-series. With two-thirds of its portfolio on UNISOC chipsets, realme ensured strong supplies in the entry-level price.

long live climbed to third place, growing 17% year-over-year. It continued to lead the offline channel with 24% market share. vivo was the second largest 5G smartphone player in the Indian market with 33% of its smartphones being 5G. The expansion of the online channel through its T-series and new launches of the iQOO sub-brand have led to an increase in its online share.

Samsung dropped to fourth place, posting a weak 2Q22 with 3% year-over-year growth. Despite a refreshed wallet, demand remained weak, while ASPs soared to $250 (the highest among the top five providers). It continued to dominate the 5G segment with 46% of its shipments as 5G smartphones.

Oppo, in the fifth tranche, experienced a meager growth of 2%. It focused on the mid-range segment with the launch of the F21 Pro and expanded into the online channel with the K-series. However, supply constraints persist in the affordable segment.

— Ends —

For more information on this report, trends or analyst questions, please contact Shivani Anand, Senior Marketing Specialist at sanand@idc.com . You can also follow IDC India Twitter and LinkedIn pages for regular updates on IDC research and events.

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International Data Corporation (IDC) is the world’s leading provider of business information, consulting services and events for the information technology, telecommunications and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise on IT technology, benchmarking, and procurement, as well as industry opportunities and trends in more than 110 countries. IDC’s analysis and insight helps IT professionals, business executives, and the investment community make fact-based technology decisions and achieve their key business goals. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world leader in technology media, data and marketing services. To learn more about IDC, visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC blog for industry news and insights.

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