India smartphone shipments declined for the third consecutive quarter

The opening of the year was relatively slower as compared with 1Q21.

India smartphone shipments declined for the third consecutive quarter, shipping 37 million smartphone units in 1Q22, a drop of 5 per cent YoY. The opening of the year was relatively slower as compared with 1Q21, due to the impact of the third wave of COVID, tight supplies especially for the low-end price segments, and rising inflation leading to increasing end consumer prices.

“5G accounted for 31 per cent of shipments with an ASP of $US375 in 1Q22. IDC estimates that shipments beyond $US300 will be fully 5G by the end of 2022,” said Upasana Joshi, Research Manager, Client Devices, IDC India.

Key highlights from 1Q22:

  • The pandemic-induced surge in eTailer shares over the past two years subsided with a marginal drop to 49 per cent in 1Q22, but with 7 per cent YoY growth in shipments. The growth came from multiple sales events such as Republic Day, Valentine’s Day, etc., combined with online exclive offers. Offline channel shipments fell by 13 per cent YoY. Despite no major COVID-related restrictions on movement, retail footfall remained low through the quarter.
  • ASPs continued to rise for the fourth consecutive quarter, hitting an all-time high of $US211, on the back of increased prices both for existing and newly launched devices. MediaTek-based smartphones had a share of 51 per cent at an ASP of $US174 while Qualcomm made a recovery increasing its share to 28 per cent with and ASP of $US244.
  • The sub-$US200 segment struggled as shipments dropped by 16 per cent, but the mid-range segment of $US200-$US300 grew to 18 per cent share from 14 per cent in 1Q22. The mid-premium segment ($US300-$US500) registered a high growth of 75 per cent YoY, and the premium segment ($US500+) accounted for a 5 per cent share, with 60 per cent of shipments coming from Apple.
  • “The outlook for 2022 remains cautio from the consumer demand standpoint. Due to rising inflation and lengthening of the smartphone refresh cycle, IDC expects 2Q22 also to remain muted, while smartphone supplies gradually return to normal, resulting in a slower 1H22 compared to 72 million shipments in 1H21,” says Navkendar Singh, Research Director, Client Devices & IPDS, IDC India.

Top 5 Smartphone Vendor Highlights

Xiaomi continued to lead, though shipments declined by 18 per cent YoY in 1Q22. Its dominance in the online channel remained with a 32 per cent share (including sub-brand POCO). In the 5G segment, Xiaomi jumped to the second slot with volume drivers like the MI 11i series and Redmi Note 11T. However, the ASP of its 5G phones at $US268 was still double that of its 4G phones.

Samsung regained its second slot, registering a YoY decline of 5 per cent in 1Q22. The opening quarter for the Galaxy S22 series witnessed a strong demand with impressive pre-bookings, especially in the offline channel. It also maintained its lead in the 5G segment with a 29 per cent share, the key models being the Galaxy M32 and Galaxy A22.

realme dropped to the third slot but emerged as the only vendor in the top 5 to register a growth of 46 per cent YoY, having the lowest ASP of $US142. It also maintained its second position in the online space with 23 per cent share in 1Q22 supported by affordable C-series offerings.

vivo was at the fourth slot, with a shipment decline of 17 per cent YoY. It continued to lead in the offline channel with 24 per cent share in 1Q22. With the launch of the new T series and additions to its sub-brand iQOO, its online shipments are expected to see movement in upcoming quarters.

OPPO, in the fifth slot, fell 25 per cent. Apart from a huge marketing foc on the mid-premium Reno 7 series, OPPO also launched the K series, placing the majority in the online segment.



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