NEW DELHI: The total smartphone shipments in India in the three months ending June declined sharply by 41% QoQ, and 48% YoY, owing to the nationwide lockdown, disruptions in supply chain and slow domestic production, said a new report by market research firm CMR on Thursday.
“As a consequence of the pandemic, Q2 2020 was, in essence, a lost quarter. While the mobile handset industry faced multiple challenges with respect to their supply and demand-side dynamics, the industry looks set on the path to a potential recovery in the coming months,” said Amit Sharma, Manager-Industry Intelligence Group, CMR.
Despite the overall dip in the India smartphone market, Chinese smartphone brands cumulatively accounted for 73% of market share in India during Q2 2020, with Xiaomi and Vivo leading the charts in first and third positions, accounting for 30% and 17% market share, respectively.
An immediate beneficiary of the challenges plaguing Chinese smartphone makers amid the Covid-19 pandemic was Samsung as it secured the second position with a market share of 24%.
Xiaomi’s dominance was driven by its Redmi 8A Dual, Redmi 8, and Redmi Note 8 which together contributed to more than 60% of its total shipments whereas Samsung captured the second position due to its good supply-side dynamics, resulting in an increase of 8% QoQ market share. Samsung Galaxy M11, A21S and A31 contributed to almost 50% of its overall shipments.
“With a resilient supply chain, Samsung was able to arrest its declining market share, and improve upon its market share,” said Sharma, and added that it remains to be seen if the handset maker is able to maintain its market performance in the coming quarters, garner consumer demand, and take on the dominance of Chinese smartphone makers.
Though Vivo’s market share remained flat at 17% during Q2 2020, its Y17 and Y91i along with newly released Y50 contributed to more than 55% of its overall shipments.
Realme, for the very first time, witnessed a 2% QoQ decline in its market share, Its smartphone models such as Realme C2, Realme C3, Realme 5i, and the recently launched Narzo series contributed to three fourth of its shipment in the quarter.
Oppo market share declined by 3% QoQ. Its 5th position in the leaderboard was driven by the import of smartphone models, such as A31, A1k, and the newly launched, A12.
OnePlus introduced its 5G enabled smartphones, OnePlus 8 and 8 Pro, which contributed to one third of its Q2 shipments and three fourth of all 5G shipments in Q2, whereas the Transsion Group (comprising brands such as Tecno, itel and Infinix) witnessed a marginal QoQ decline of 3% in its market share.
On the other hand, Finnish handset maker Nokia’s smartphone share declined while Apple held onto the eighth position in the top ten smartphone leaderboard, riding on the waves of good demand for the new-gen iPhone SE (2020).
“However, the smartphone market is showing some encouraging signs of revival, which sets it on a potential course for market recovery in H2 2020, the report noted.
“Our current estimates point to better performance for the India smartphone market in H2 2020, with the market anticipated to recover by >40%, in comparison to H1,” added Sharma.
“We believe recent announcements, such as the Jio-Google deal, augur well for the future of the mobile handset industry in India, and in potentially enabling the migration of feature phone to smartphone users, with its focus on driving affordability,” added Anand Priya Singh, Analyst, Industry Intelligence Group, CMR.