The third COVID-19 wave has made supply constraints and demand decline for smartphone shipments. The first quarter of the year 2022 saw a decline of 1% YoY to reach over 38 million units, as per Counterpoint’s Market Monitor service.
“India’s smartphone market registered its first ever Q1 decline in Q1 2022. The component issues were a major reason for this decline and affected almost all the brands. OEMs are adopting various strategies to tackle the supply issues, such as expanding the supplier portfolio and increasing local sourcing,” says Senior Research Analyst Prachir Singh.
The overall mobile handset market in India has declined to 16% YoY in the first quarter, adding to the feature phone market declining to 39% YoY. Some of the major reasons for this include supply issues, high inventory levels and softening of consumer demand due to high inflation.
Key takeaways:
- Xiaomi not only retained its top position in the market but also stood second in 5G shipments for the very first time.
- As one of the top-selling brands in India for the consecutive second quarter, Samsung revamped its A series and M series along with launching its latest S22 series. This helped maintain the lead in the market for the company.
- UNISOC chipsets for mass-market models worked out well for realme, which is the only brand to experience growth in the first quarter.
- With the effect of the Omicron wave and increasing competition, Vivo’s volumes in the mass-market segment were affected. iQOO and T-series(which gave a positive consumer response), increased the online market share.
- Consistent in the fifth position, OPPO has however received a good response for Reno 7 series. Its shipments are expected to increase with the revamped A16 series.
- Itel, Infinix and TECNO (Transsion Group brands) have a 11% share in the market and have the fourth spot.
- Apple remains the top-selling brand with its offers on the iPhone 13 and iPhone 12 channeling its growth. The company continues to expand its manufacturing capabilities in the country while increasing its offline reach.
- Nord CE 2 5G, one of the top 5G smartphone models, by OnePlus enabled the company to capture the third position in the premium segment.
5G smartphone share is expected to reach 40% by end of 2022, with the shipments registering a 314% YoY growth.
