Smartphone vendors had a dream run in the India market in 2021, registering highest ever shipments crossing 169 million units in 2021, logging 11 per cent year-on-year (YoY) growth, according to Counterpoint Research’s Market Monitor service,
The smartphone market showed high resilience in a year that witnessed a second and more virulent COVID-19 wave as well as supply disruptions and price increases due to the ongoing semi conductor shortages.
The report notes that increased adoption and demand for 5G smartphones was one of the key factors for high smartphone shipments in 2021. Increasing interest in 5G smartphones devices contributed to about 17 per cent of the overall shipments in 2021, registering 6x growth compared to 2020.
“Intense competition among OEMs, availability of cheaper 5G chipsets and declining prices of 5G devices will enable brands to push more 5G devices into the market. The price of entry-level 5G devices has come down by 40 per cent in the last six months. The increase in affordability of 5G devices has been a key reason for high 5G smartphone adoption,” Counterpoint said in its report.
Interestingly, consumer demand remained high in the higher price tiers (above Rs 20,000) in 2021 with shipments in these price bands growing 95 per cent on YoY basis. While there was a significant decline in the sales of devices under Rs 10,000. And in the Rs 30,000 and above price band, smartphones witnessed 98 per cent growth.
The retail ASP (average selling price) also showed high growth, increasing by over 13 per cent YoY. High installed base as well as high replacement demand coupled with the increasing affordability of premium devices led to the high growth of the premium segment.
“Going forward, we expect the market to continue to grow by double digits with a healthy contribution of the mid-to-high-end 5G smartphones. India’s smartphone market continues to offer big opportunities for multiple players to grow and co-exist,” the report added.