Pent-Up Demand, Festive Sales Push Smartphone Shipments To Record High

Smartphone shipments rose to a record in India in the quarter ended September aided by pent-up demand as the country eased pandemic relaxations amid festive season rush.

The world’s second-largest handset market shipped 53 million units in the three months through September—a 9% year-on-year rise, Counterpoint Research said in a a report, adding the Indian handset market grew 8% over a year ago in the same period aided by consumer demand and higher sales of feature phones.

“September has always been a high sell-in month as brands prepare for the upcoming festive season and push stocks in the channels. Almost all brands recorded growth compared to the last year,” Prachir Singh, senior research analyst at Counterpoint Research, was quoted as saying in a statement. Singh said pent-up demand due to the lockdown and strong sales on online platforms led to the growth

The first week of the ongoing festive sale, too, saw higher demand for smartphones as the segment dominated online sales, accounting for 47% of total sales.

The market which was disrupted by coronavirus-induced lockdown is seeing multiple shifts.

Samsung overtook Xiaomi to become the leading brand in the Indian market after two years with 24% market share, and is also the fastest brand to recover surpassing the pre-Covid levels.

Samsung’s success was attributed to its effective supply chain and focus on multiple price points through new launches, and aggressive sales via online channels. Xiaomi’s decline was largely led by Covid-19-induced manufacturing constraints that impacted its supply chains and led to a supply-demand gap.

Shilpi Jain, research analyst at Counterpoint Research, said geo-political tensions between India and China had an impact on Chinese brands during the start of the quarter, but the sentiments have subsided. “Consumers are weighing in different parameters during the purchase as well,” she said.

The anti-China sentiment has also propelled domestic makers to regain their market share, prompting other players to re-enter the market. Indian brand Micromax, once a market leader, is planning a comeback with a new smartphone sub-brand called “In”.

The mid-tier smartphone segment comprising phones priced between Rs 10,000 and Rs 20,000 was the fastest growing in the September quarter, the report said. Apple led the premium segment, with phones priced over Rs 30,000, overtaking OnePlus. Apple’s market share gain is led by strong demand for its iPhone SE 2020 and the iPhone 11, the report said.

Counterpoint suggested the iPhone 12 series is set to further strengthen Apple’s position in the coming quarter.