Smartphone shipments fall 14 per cent in March quarter

NEW DELHI:  Smartphone shipment in India fell 14 per cent quarter-on-quarter to 38 million in Q121 (January-March) as  the onset of the second Covid-19 wave towards the end of the quarter resulted in subdued consumer demand. 

According to International Data Corporation (IDC) data, China’s Xiaomi retained its market  leader position in India with a 27.2 per cent market share in Q1CY21. However, in the same quarter last year, Xiaomi’s market share had stood at 31.2 per cent. Samsung, meanwhile, witnessed a 43.4 per cent year-on-year growth in shipment volume and increased its market share from 15.6 per cent in Q120 to 19 per cent in Q121. 

During the on-going quarter, smartphone sales are expected to remain lower than last year, a time when demand for the gadget had skyrocketed due to lockdowns and a rise in e-learning from home. “The April-June quarter is expected to face growth challenges under the weight of the second wave of infections,” said Navkendar Singh, Research Director, Client Devices & IPDS, IDC India. However, the high shipments from the first quarter should be able to suffice for the immediate demand.

He added, “The recovery in 2021 might not be as smooth as expected earlier, with uncertainty around the lasting impact of the second wave and a possible third wave in next few months. IDC expects a rebound in consumer sentiments in the second half of 2021, resulting in a single-digit growth annually. However, the degree of growth will be restricted due to reduced discretionary spending, supply constraints, and anticipated price hikes in components in upcoming quarters.”

Almost 7 per cent of overall shipments in Q1CY21 were 5G enabled smartphones even as the latest generation cellular network is months/years away from becoming a reality.  Further, the premium segment ($500+), grew 143 per cent YoY, with 71 per cent of those units based on 5G. Apple, Samsung, and OnePlus continued to dominate in that space, with the super expensive iPhone 11 and 12 together accounting for 28 per cent of shipments; followed by the Samsung’s new Galaxy S21 series and the OnePlus 9 series.

Separately, feature phone shipments declined by 8 per cent YoY, despite Reliance Jio launching its new 4G device bundled with telco offers. However, the 2G segment witnessed a 3 per cent growth driven by iTel and Lava.