Xiaomi holds top slot in India’s smartphone market, Realme rises to number 2 in Q4: Counterpoint

Despite supply issues plaguing the smartphone manufacturing ecosystem, India’s smartphone shipments grew overall for 2021. However, the fourth quarter saw a decline of 8 per cent overall.

Preliminary analysis from Counterpoint on smartphone market in India in 2021. (Express Image)

Despite supply issues plaguing the smartphone manufacturing ecosystem, shipments grew 11 per cent year-on-year (YoY) to reach 169 million units in 2021, according to the latest research from Counterpoint Research. But the fourth quarter saw supply chain issues in December and the market declined by 8 per cent in the final quarter of 2021.

“The high replacement demand fuelled by increasing smartphone affordability in the mid- and high-price tiers due to promotions and discounts, as well as better financing options, led to growth in 2021. But demand outstripped the supply in the last two quarters of 2021. We expect the supply situation to get better going forward and reach normalcy by the end of Q1 2022,” Prachir Singh, senior research analyst at Counterpoint said in a press statement.

While the market declined in the final quarter, the average selling price (ASP) of smartphones also grew 14 per cent yearly and reached its highest ever at $227.

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“The price hikes in the budget segment due to component price rise, increasing focus of OEMs on the premium segment and increased demand for mid-range and premium smartphones due to increasing uses and availability of financing options contributed to the higher ASP,” Shilpi Jain, Research Analyst at Counterpoint added. She also noted that local manufacturing bounced back and contributed to 98 per cent shipments in 2021.

Interestingly, the Indian smartphone market revenue crossed $38 billion in 2021, registering a growth of 27 per cent YoY.

The report highlights that Xiaomi maintained the top position in India’s smartphone market in 2021, but its growth was limited to just 2 per cent YoY. But the brand also reached its highest ever share in the premium segment (phones priced more than Rs 30,000) and saw triple digit growth of 258 per cent in this segment. “Going forward, it will keep focusing on the premium segment and offline expansion,” Counterpoint noted.

While Samsung remained at the second position for 2021 overall, it saw an 8 per cent YoY decline in shipments. “Supply chain disruptions, absence of new Note series, reduced focus on the entry-level segment and fewer launches in the mid segment” led to an overall decline of the Samsung devices, according to the research firm.

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However, the South Korean company was the top brand in 5G smartphone shipments in the fourth quarter of 2021. It also led the mid range segment with a 28 per cent share. Notably, Samsung’s foldable device (Fold and Flip series) shipments grew by triple digits in the year.

Vivo was number three brand overall, and emerged as the top 5G smartphone brand with a 19 per cent share. But it slipped to number four spot in the fourth quarter.

Realme is on number four overall for 2021, witnessing 20 per cent YoY growth. However, Realme managed to capture the second spot for the first time in the Indian smartphone market in the fourth quarter of the year. The report notes that for Realme switching to ‘Unisoc’ to manage component shortages, along with production expansion through partnerships with Electronics Manufacturing Services (EMS) helped boost its shipments. The brand’s focus on the premium segment with newly launched ‘GT series’ and high demand for its revamped C series and Narzo series were other factors that worked in its favour as well.

OPPO held on the fifth position in 2021 with 6 per cent YoY growth.

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Apple was one of the fastest growing brands in 2021 with 108 per cent YoY growth in shipments. “Apple maintained its lead in the premium segment (above Rs 30,000) with a 44 per cent market share. Aggressive offers during the festive season, strong demand for the iPhone 12 and iPhone 13 and increased ‘Make in India’ capabilities drove high growth,” Counterpoint wrote in its report.

OnePlus reached its highest ever shipments, crossing the 5-million mark with 59 per cent YoY growth driven by the OnePlus Nord Series. OnePlus also captured the second position in the premium segment (Rs 30,000- Rs 45,000) with a 19 per cent share.

Meanwhile, in the affordable segment Transsion Group brands which includes itel, Infinix and TECNO logged 55 per cent YoY growth and crossed 10 million shipments for the first time ever in a single year.