According to preliminary results from the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, 35 million smartphones were shipped to India in Q2 2022, a 3 per cent year-over-year (YoY) growth, while the first half of 2022 declined by 1 per cent YoY to 71 million units. The second quarter of the year normally has seasonally strong demand compared to the first quarter, but dwindling consumer demand led to a decline of 5 per cent quarter-over-quarter (QoQ).
Commenting on the results, Upasana Joshi, research manager, client devices, IDC India, said, “The primary challenge in 2021 was around supply constraints, which have eased considerably. However, the market is now facing demand contraction in 2022 due to rising inflation and higher input costs, leading to higher market prices. As a result, the inventory cycles are increasing across brands and channels.”
Meanwhile, Navkendar Singh, associate vice president, devices research, IDC India, South Asia and ANZ, said, “5G smartphone supplies are much better than 4G, leading to higher average selling prices (ASPs) but lower demand. The mass segment of below $200 has seen fewer new launches. On top of this, inflationary stress is impacting consumer demand and is not expected to ease anytime in H2 2022. These factors will certainly impair 2022 to be flat.”
Key highlights from Q2 2022:
- The online channel reached a share of 52 per cent with 5 per cent YoY growth. This is expected to stay strong in H2 2022 festival season, with more promotions during the sales events by e-tailer platforms. The offline channel registered flat growth of 1 per cent after declining YoY for three consecutive quarters.
- The ASP has grown consistently QoQ since Q4 2020, reaching a new high of $213 in Q2 2022, a growth of 15 per cent YoY.
- The share of UNISOC continued to rise, reaching 17 per cent in Q2 2022 while MediaTek’s share dropped to below 50 per cent, which has not been seen since 2020. The shipment and shares of Qualcomm and Samsung-based smartphones increased.
- 11 million 5G smartphones were shipped with an ASP of $377. 51 million 5G smartphones have shipped from 2020 to H1 2022, and they are expected to cross 50 per cent market share by 2023.
- The premium segment of $500+ was the highest growing segment with 83 per cent growth YoY, contributing 6 per cent of the market. Apple continued to dominate with a 53 per cent share, followed by OnePlus (19 per cent) and Samsung (15 per cent). The mid-range segment of $200-$300 accounted for 17 per cent of the market, growing by 21 per cent YoY and continues to be the focus area of vendors with several model launches slated in the next few months. The highest decline was in the sub-$100 segment, which was down to 17 per cent share of the market from 22 per cent a year ago.
Top five smartphone company highlights:
- Xiaomi continued to lead but was the only vendor amongst the top ten with declining shipments (-28 per cent) YoY in Q2 2022. It faced supply constraints through H1 2022, especially in the sub-$200 segment. But Q2 2022 was the launch quarter of its Redmi 10 series, which together with Redmi 9A Sport and Redmi Note 11, accounted for 35 per cent of its shipments. Xiaomi dropped to the third slot within the 5G segment, which contributed 25 per cent of its overall shipments.
- Realme climbed to the second slot for a second time, with a strong YoY growth of 24 per cent (highest among top five vendors) in Q2 2022. It cemented its second position in the online channel with 23 per cent share with affordable model offerings in the C-series. With two-thirds of its portfolio on UNISOC chipsets, realme ensured strong supplies in the entry-level price segment.
- Vivo climbed to the third slot, growing by 17 per cent YoY. It continued to lead the offline channel with 24 per cent share. vivo was the second largest 5G smartphone player in the Indian market with 33 per cent of its smartphones as 5G. Expansion in the online channel through its T-series and new launches in the sub-brand iQOO led to a surge in its online share.
- Samsung dropped to the fourth slot, registering a weak Q2 2022 with a growth of 3 per cent YoY. Despite a refreshed portfolio, demand remained low, while ASPs climbed to $250 (highest amongst the top five vendors). It continued to lead in the 5G segment with 46 per cent of its shipments as 5G smartphones.
- OPPO, in the fifth slot, witnessed a meagre growth of 2 per cent. It focused on the mid-premium segment with launch of the F21 Pro and expanded in the online channel with the K-series. However, the supply constraints persisted in the affordable segment.