Smartphone shipments in India fell 13% on-quarter as Chinese companies keep their stronghold

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Pedestrians stroll previous a Xiaomi Corp. retailer and a Samsung Electronics Co. retailer in Mumbai, India.

Dhiraj Singh | Bloomberg | Getty Images

Smartphone makers shipped about 32.four million units in India between April and June, in accordance with analysis agency Canalys.

That was about 13% fewer handsets shipped in contrast with the earlier three months. A devastating second wave of Covid-19 in India between February and May prompted regional lockdowns and created financial disruption that in the end stifled smartphone demand.

“Smartphone vendors in India had assumed Covid-19 would not return, and several planned to invest in infrastructure for branded stores and partnerships with third-party offline channels,” Sanyam Chaurasia, an analyst at Canalys, stated in a press release. “But once again they were quickly compelled to pivot to an online strategy.”

On a yearly foundation, smartphone shipments jumped 87% as India was below a strict nationwide lockdown for a lot of the April-June interval final 12 months.

Xiaomi nonetheless in pole place

Xiaomi remained on prime, holding 29% share in one of many world’s fastest-growing smartphone markets, in accordance with Canalys. The Chinese smartphone maker, which lately overtook Apple to turn into second globally, shipped 9.5 million units in India.

Its on-line gross sales obtained a lift from the Redmi Note 10 collection, Canalys stated in its report.

Samsung held on to second place with a 17% share of the Indian market. It shipped 5.5 million units between April and June, barely edging out Vivo’s 5.four million models.

Vivo, Realme and Oppo rounded up the highest 5, with greater than 14 million units shipped in whole, as Chinese distributors maintained their dominance of the Indian smartphone market. They constructed their presence over time by promoting comparatively high-quality smartphones at extra reasonably priced costs in contrast with the premium units from Samsung and Apple.

Signs of restoration

Canalys stated indicators of a restoration out there emerged towards the top of the second quarter on account of a lift in shopper confidence from India’s aggressive vaccine push in key areas. The analysis agency expects a rebound within the second half of the 12 months as manufacturers develop their promotional actions and launch new units.

“But the second half will not see a surge in pent-up demand like last year. The threat of a third wave still looms in India, but as citizen behavior and industrial operations continue to adapt to pandemic conditions, its impact should be minimal,” Chaurasia stated.

Smartphone makers will possible additionally face challenges together with growing prices, restricted provide of components — similar to reminiscence chips — rising transport fees and a tricky financial surroundings, in accordance with the analysis agency.

Chaurasia defined that the scarcity of elements provides to the chance of regional de-prioritization, the place the smartphone makers might look to allocate their restricted provides of units to extra profitable, high-end markets.

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