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India’s smartphone market expected to recover in the upcoming festive season: IDC

According to IDC, the sub-US$100 segment increased to 29 per cent share in Q2 2020 from 20 per cent a year ago. The report further noted that the Redmi 8A Dual alone contributed 33 per cent of the shipments in this segment.

By: Tech Desk | New Delhi | Updated: August 8, 2020 10:12:11 am
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The latest report from International Data Corporation (IDC) states that India’s smartphone market has declined year-over-year (YoY) in the second quarter to 18.2 million units. And it is due to the country-wide lockdown through the first half of the quarter amid the Covid-19 pandemic. During the lockdown, manufacturers faced major supply chain disruptions but by June sales increased in the country and that’s mainly due to the pent-up demand from the lockdown period.

According to IDC, the sub-US$100 segment increased to 29 per cent share in Q2 2020 from 20 per cent a year ago. The report further noted that the Redmi 8A Dual alone contributed 33 per cent of the shipments in this segment.

The US$200-300 segment fell YoY. The mid-premium segment of US$300<500 with a share of 4.8 per cent declined YoY by with top models such as Samsung Galaxy A51 and A71, Vivo V19, Apple iPhone SE (2020), and the OnePlus 7T.

Shipments in the premium segment also declined by YoY in Q2 2020. However, Apple continued to dominate there with a market share of 48.8 per cent, followed by Samsung and OnePlus. The iPhone 11 and iPhone XR together accounted for 28 per cent shipments in this segment with Xiaomi’s Mi 10 and the OnePlus 8 series as new entrants in the quarter.

Overall, Samsung led the smartphone market with a market share of 24 per cent, followed by Xiaomi and Vivo.

Navkendar Singh , Research Director, Client Devices & IPDS, IDC India said, “The ongoing supply chain challenges forced the brands to go for direct imports to meet the pent-up demand post-lockdown, especially in June, adding extra cost pressures. Further, this surge in demand is expected to continue throughout the first half of 3Q20 as well, requiring a steady supply of devices in the market.”

“IDC expects the market to show signs of recovery in the second half of the year, as we approach the festive quarter with the majority of the consumers looking to buy low-end and mid-range devices. However, this will be dependent on brand marketing and channel initiatives, especially by eTailers during the festive sales. Brand initiatives around multi or hybrid channel strategies will also play a key role as offline partners and brands will be looking for pockets of growth in these crucial next few months,” Singh added.

IDC stated that the online channel registered a high market share of 44.8 per cent but declined 39.9 per cent YoY in unit terms due to lockdown restrictions on the delivery of electronics as well as severely limited stock for most of the quarter.

Upasana Joshi, Associate Research Manager, Client Devices, IDC India said, “Many offline channel partners adopted new ways of marketing by reaching out to consumers through social media platforms, WhatsApp, references, etc., for doorstep demos and deliveries, as well as accepting contactless payments. However, these initiatives were limited to big and medium-size retail outlets in metros and Tier 1/2 cities, and was not able to arrest the steep annual decline of -56.8 per cent for the offline channel.”

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