India's Smartphone Market Expected to Recover in the Second Half of 2020 After a Steep Decline in the 2Q2020: IDC India
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India’s Smartphone Market Expected to Recover in the Second Half of 2020 After
a Steep Decline in the 2Q2020: IDC India
th
NEW DELHI, August 7 , 2020 - According to the International
Data Corporation’s (IDC) Quarterly Mobile Phone Tracker,
India's smartphone market registered a sharp year-over-
year (YoY) decline of (-50.6%) in the second quarter to
18.2 million units, as the country remained under lockdown
through the first half of the quarter. Vendors faced major
supply chain disruptions at the beginning of the quarter, and
the shortage continued into the rest of the quarter as factories
operated at partial capacity even after the lockdown was
lifted. Components and parts remained at the ports waiting
to be cleared, especially for China-based vendors. By June,
sales increased mainly due to the pent-up demand from the
lockdown period. However, purchases were mainly driven by
availability rather than by choice.
The online channel registered a high market share of 44.8%
but declined 39.9% YoY in unit terms due to lockdown
restrictions on the delivery of electronics as well as severely
limited stock for most of the quarter. "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% for the offline channel,”
says Upasana Joshi , Associate Research Manager, Client
Devices, IDC India.
The average selling price of smartphones remained flat at
US$161 in 2Q20. Brands were forced to increase prices
due to the GST hike in April and the depreciating rupee. The
sub-US$200 segment reached a high of 84% share due to
dampening consumer sentiment. The sub-US$100 segment
increased to 29% share in 2Q20 from 20% a year ago. The
- 1-Redmi 8A Dual alone contributed 33% of the shipments in this segment. The US$200-300 segment fell (-71.6%) YoY. The mid-premium segment of US $300
India Smartphone Market, Top 5
Company, Shipments in million,
Market Share, Year-on-Year
Growth, 2Q20
Company
2Q20 2Q20 2Q19 2Q19 Year-
Shipment
MarketShipment
MarketOver-
Volumes Volumes Year
Share Share
Unit
Change
- 3-(2Q20
over
2Q19)
1. 5.4 29.4%10.4 28.4%-48.7%
Xiaomi
2. 4.8 26.3%9.3 25.2%-48.5%
Samsung
3. 3.2 17.5%5.6 15.1%-42.9%
vivo
4. 1.8 9.8% 2.8 7.7% -37.0%
realme
5. 1.8 9.7% 3.6 9.7% -51.0%
OPPO
Others1.2 7.3% 5.1 13.9%-74.0%
Total 18.2 100.0%
36.8 100.0%
-50.6%
Source: IDC Quarterly Mobile
Phone Tracker, August 2020
Note: The "Company" represents
the current parent company (or
holding company) for all brands
owned and operated as subsidiary
Top 5 Smartphone Vendor
Highlights
Xiaomi continued to lead with total
shipments of 5.4 million in 2Q20
despite falling (-48.7%) YoY. Four
out of the top five models in 2Q20
were Xiaomi models, namely the
Redmi Note 8A Dual, Note 8, Note
9 Pro, and Redmi 8, accounting for
21.8% share. Xiaomi launched its
Mi Commerce solution to create
an omnichannel experience for
partners but also continued its
dominance in the online channel
with 42.3% share in 2Q20.
Samsung surpassed vivo for the
second slot despite a strong YoY
decline of (-48.5%) in 2Q20 to 4.8
- 4-million units. The Galaxy M21 was
among the nation’s top 5 shipped
models in 2Q20 and most of its
online-exclusive Galaxy M series
was opened to offline channels,
though at higher prices. Samsung
stood in second place in the online
channel with a share of 22.8%
and was the leader in the offline
channel with 29.1% share in 2Q20.
The brand also partnered with
Benow and Facebook, enabling
offline retailers to start sales using
digital platforms, thus adhering to
social distancing norms.
vivo slipped to the third position,
with shipments of 3.2 million units,
declining by (-42.9%) YoY in
2Q20. Though it retained its fourth
position in the online channel on
the back of its Z/U series, vivo
slipped to the second slot in the
offline channel with 26.5% share
in 2Q20. The affordable Y series
continued to garner the majority of
its volumes, though stock issues
remained.
realme was at the fourth position
with 1.78 million units shipped
in 2Q20, declining by (-37%)
YoY. The vendor faced stock
issues owing to factory closures
through May. The affordable C3/
C2 accounted for the majority of its
shipments (36.3%), followed by the
newly launched Narzo series.
OPPO at fifth position witnessed
a (-51.0%) YoY decline to 1.76
million units in 2Q20. The brand
had severe stock issues and even
- 5-imported completely built units
directly in June, as the factory
remained closed owing to multiple
COVID-19 cases. The same
factory manufacturers devices for
realme and OnePlus, which also
faced challenges in stocks. OPPO
also launched its first 5G device,
the Find X2, in 2Q20.
IDC India Forecast
Navkendar Singh , Research
Director, Client Devices & IPDS,
IDC India mentions, “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.”
About IDC Trackers
- 6-IDC Tracker products provide
accurate and timely market size,
company share, and forecasts
for hundreds of technology
markets from more than 100
countries around the globe. Using
proprietary tools and research
processes, IDC's Trackers
are updated on a semiannual,
quarterly, and monthly basis.
Tracker results are delivered
to clients in user-friendly excel
deliverables and on-line query
tools. The IDC Tracker Charts app
allows users to view data charts
from the most recent IDC Tracker
products on their iPhone and iPad.
About IDC
International Data Corporation
(IDC) is the premier global
provider of market intelligence,
advisory services, and events
for the information technology,
telecommunications, and
consumer technology markets.
With more than 1,100 analysts
worldwide, IDC offers global,
regional, and local expertise
on technology and industry
opportunities and trends in over
110 countries. IDC's analysis and
insight helps IT professionals,
business executives, and the
investment community to make
fact-based technology decisions
and to achieve their key business
objectives. Founded in 1964, IDC
is a wholly-owned subsidiary of
International Data Group (IDG),
the world's leading tech media,
data and marketing services
- 7-company. To learn more about
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For more information contact:
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sanand@idc.com
9910466896
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