The Indian smartphone market saw an 18 percent growth in shipments year on year, with 38 million units shipped in the first three months of 2021, according to market research firm, IDC. While this indicated strong demand and sales in the market, IDC states that the outbreak of the second wave of Covid-19, coupled with anticipation of a potential third wave of the virus, will likely lead to weaker quarters in the coming months. However, this reduce in growth will not be as drastic as what the first outbreak of Covid-19 led to in India, in 2020. As a result, IDC states that the overall market may end with single-digit growth figures through 2021, therefore making it even more competitive for the leading OEMs selling smartphones in India.
Quarterly shipments in March 2021
According to IDC data from its quarterly smartphones tracker, Xiaomi maintained its lead by shipping 10.4 million smartphones in the first quarter of 2021, capturing 27.2 percent of the market. Samsung, which was third in Q1 2020 after having fallen behind Vivo, saw a 43.4 percent year on year growth to ship 7.3 million units and account for 19 percent of the market. Vivo shipped 6.6 million units with 17.3 percent of the market, but saw a 2.9 percent decline in shipments. Oppo, meanwhile, shipped 4.7 million smartphones to capture 12.2 percent of the market, at a 35.3 percent growth pace. Realme ranked fifth, with 4.1 million devices shipped for 10.7 percent of the market, but accounting for a 3.6 percent decline since last year.
Contradicting market forces
Talking about the impact of the second wave of Covid-19 in India, Navkendar Singh, research director of mobile devices at IDC India says, “The high shipments from the first quarter should be able to suffice for the immediate demand. But IDC estimates the impact to be less pronounced compared with last year, with factories being operational today and only limited restrictions on logistics/transportation and state-level lockdowns instead of a nationwide lockdown.”
Detailing the contradictory market forces at play, Singh adds that while supplies may not be hit too hard given the different nature of this Covid-19 wave, a stronger uncertainty among consumers may falter sales. “The recovery in 2021 might not be as smooth as expected earlier, with uncertainty around the lasting impact of the second wave and a possible third wave in next few months. IDC expects a rebound in consumer sentiments in the second half of 2021, resulting in a single-digit growth annually. However, the degree of growth will be restricted due to reduced discretionary spending, supply constraints, and anticipated price hikes in components in upcoming quarters,” he added.
The second wave outbreak has faltered what were soaring predictions made towards the end of 2020, for the Indian smartphone market in 2021. Uncertainty in terms of consumer confidence in spending will clearly lead to reduced casual purchases, and it is not clear if work from home will continue to push consumer electronics the way it did in 2020.
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