India’s smartphone market fell 1% in the first half of 2022, with shipments from Xiaomi – the top-selling brand – down 28% due to weak consumer demand in the quarter ending June.
According to International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, 71 million smartphones were shipped from January to June this year. The biggest drop was in the sub-$100 segment, which lost market share by 5%.
The second quarter (April-June) of the year, which typically has strong seasonal demand compared to the first quarter, saw a 5% sequential decline, according to the study.
Navkendar Singh, Associate Vice President, IDC South Asia and ANZ, said, “5G smartphone supplies are much better than 4G, resulting in a higher average selling price (ASP) but lower demand. The under-$200 mass segment saw fewer launches. Moreover, inflationary pressures are having an impact on consumer demand and are not expected to ease anytime in the second half. These factors will certainly see 2022 be flat.
Xiaomi continued to be the top-selling brand, but saw a sharp drop in shipments due to supply constraints in the first half of 2022. The sub-$200 segment suffered the most due to security issues. ‘supply.
The company recovered in the April-June quarter with the launch of its Redmi 10 series. That, along with Redmi 9A Sport and Redmi Note 11, accounted for 35% of its shipments, the report said.
“The main challenge in 2021 was supply constraints, which have eased considerably. However, the market is now facing a contraction in demand in 2022 due to rising inflation and rising fuel costs. inputs. This leads to higher market prices. As a result, inventory cycles increase across brands and channels,” said Upasana Joshi, Research Manager at IDC India.
The high-end segment over $500 saw the strongest growth with an 83% year-over-year (YoY) growth, but it still only represents 6% of the market.
Apple continued to dominate with a 53% market share, followed by OnePlus (19%) and Samsung (15%). The mid-range $200-300 segment grew 21% year-over-year.
Samsung fell to fourth position, posting a weak second quarter in 2022 with 3% year-on-year growth.
Despite a refreshed wallet, demand remained weak, while ASPs climbed to $250.
Around 11 million 5G-enabled smartphones shipped in the first half of 2022, with an ASP of $377. Samsung continued to dominate the 5G segment with 46% of total 5G smartphone shipments.