According to a Canalys report, the Indian smartphone market fell significantly by 13% in the second quarter of 2021 due to the surge in COVID-19 across the country.
According to the report, smartphone shipments in the second quarter of 2021 were about 32.4 million units, a decrease of about 13% compared to the first quarter. But at the same time, there was a two-month blockade in the second quarter of 2020, which turned out to be “very good” year-over-year with 2020, an increase of 87%.
Among the various brands and market leaders in the country, Xiaomi continues to maintain the top position, gaining a 29% market share with shipments of 9.5 million units. Samsung is in second place, shipping about 5.5 million units and boasting a 17% market share.
The top five were rounded up to Vivo (5.4 million units), Realme (4.9 million units shipped without Oppo), and Oppo (3.8 million units in total).
Compared to the second quarter of 2020, total shipments have increased and significant year-over-year growth has been seen, despite market share remaining lower than last year. For example, Xiaomi shipped about 5.3 million units in the second quarter of last year, boasting a 31% market share. As a result, the recorded annual growth rate was 77%. Samsung, on the other hand, saw an annual growth of 87%, with shipments of only 2.3 million units last year.
The reason for the drop in sales this quarter is due to the surge in COVID cases, resulting in restrictions and economic problems for the country and its individuals. Analyst Sanyam Chaurasia sought to shed light on this trend. “India was surprised by the second wave as new COVID variants emerged and quickly took hold. For smartphone vendors, this is a wake-up call to equally enhance their online and offline presence. Indian smartphone vendors expect COVID-19 to never come back and some plan to invest in partnerships with branded store infrastructure and third-party offline channels But once again, they were soon forced to shift their focus to online strategy. “
A feature of the quarter was the fact that the company actually grew its online business, largely thanks to the Redmi Note 10 series, despite the gradual decline in Xiaomi. This was pointed out by research analyst Jash Shah, who said he also saw online momentum, especially in the Narzo 30 series, as Realme used price cuts during the “brand-focused day” to overtake Oppo.
“Oppo entered the online channel directly in May. It may not be as profitable as third-party retailers, but Oppo can do more effective product marketing and increase cross-selling opportunities. You can, “he added.
However, the vaccination program will increase consumer confidence, which could increase market share and total shipments in the next quarter. To this effect, Chaurasia states: But in the second half of the year, we won’t see a surge in demand like last year. The threat of a third wave is still imminent in India, but its impact should be minimized as civil behavior and industrial activity continue to adapt to the pandemic situation. With limited parts supply, rising shipping costs and a difficult macroeconomic environment, increasing costs is difficult. In the short term, vendors will be affected by supply chain disruptions and will be conservative in raising prices. However, as brands seek to allocate limited device supplies to more profitable markets, component shortages also pose another risk: lower regional priority. “
Many new smartphones will be launched in the third quarter.New Samsung Foldable (estimated to be announced at) Unpacked event Next month), along with Apple’s new iPhone, it could boost demand for the next quarter.
https://thetechportal.com/2021/07/22/india-smartphone-quarterly-sales-dip-13-in-q221-due-to-covid-still-higher-than-q220/ India: Smartphone quarterly sales fell 13% in the second quarter of 2009 due to COVID, still higher than in the second quarter of 2008