The resurgence of covid-19 in India and the alarming increase in cases has slowed down demand for smartphones, resulting in a 14% quarter-on-quarter (QoQ) decline in shipments in January to March quarter (Q1) of CY 2021, reported International Data Corporation (IDC) in its latest quarterly tracker, published May 11.
India shipped 38 million smartphones in the first quarter down from 45 million shipped in December quarter.
Though sequential shipments shrinked, Indian smartphone market grew by 18% in terms of year-over-year (YoY) growth, IDC stated.
Researchers at IDC feel the recovery in 2021 might not be as smooth as was earlier anticipated because of the looming uncertainty of the second wave and a possible third wave in next few months.
"The April-June quarter is expected to face growth challenges under the weight of the second wave of infections. However, the high shipments from the first quarter should be able to suffice for the immediate demand," said Navkendar Singh, research director, Client Devices & IPDS, IDC India.
Singh feels the impact will be less pronounced as compared to last year as factories are operational and restrictions on logistics by state-level lockdowns have been limited, unlike last year's nationwide lockdown.
"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,” added Singh.
Chip supplier MediaTek dominated the first quarter of CY21 with a 52% market share ahead of Qualcomm which accounted for 35% of smartphones during the quarter.
Around 7% of the total smartphones that were shipped in the quarter supported 5G technology.
"IDC expects a boost in 5G shipments with more affordable options, stickiness through financing/trade-in programs, and steeper discounts/cashback offers," said Upasana Joshi, associate research manager, Client Devices, IDC India.
The premium segment (above $500) grew 143% YoY, with Apple iPhone 11 and iPhone 12 making for 28% of the shipments. Samsung's Galaxy S21 series and OnePlus 9 series were the other most shipped smartphones in the segment.
Chinese company Xiaomi asserted its leadership in India yet again with 27.2% market share on back of 10.4 million unit shipments. Xioami had shipped 12 million units in the previous quarter.
Samsung continues to trail Xiaomi, however, they managed to improve their market share from 17% in the December quarter to 19% in the March quarter. The South Korean company was the fastest growing brand among the top five with a 43% YoY growth.
Though Vivo's quarterly shipments declined, it's market share improved by a slight margin, which held it firm at the third position. The Chinese company accounted for 17.3% of smartphones shipped in the March quarter.
The only major shift in position in the top five was the return of Oppo to number four with a 35% YoY increase in shipments. Oppo accounted for 12.2% of the smartphones shipped in the quarter. Realme dropped down to number five as its market share fell from 12% to 10.7%.