Shipment of smartphones in India is expected to decline in the quarter ending December essentially due to supply challenges, according to research firm IDC.
The research agency expects low single-digit annual growth in shipments in 2021 at less than 160 million units.
The first nine months of the year (January-September 2021) already shipped 120 million units, with 1H21 clocking 42 percent year-on-year growth.
“However, due to supply challenges, 4Q21 is expected to see a decline, resulting in annual shipments below 160 million in 2021,” said Navkendar Singh, research director, client devices and IPDS, IDC India.
Further, Singh added that the first half of 2022 would remain challenging, with some easing out expected in the latter half. Vendors and channels will keep an eye on the overstocking situation in case demand stay limited due to price increases by suppliers and vendors.
In a media statement, IDC said that India’s smartphone market is expected to end 2021 with a low single-digit annual growth, adding that the market registered a YoY decline of 12 percent in the third quarter ended September, shipping 48 million units after four consecutive quarters of growth.
“Much of this can be attributed to component shortages as well as an unusually high 3Q20 comparison base (whereas this year’s post-lockdown demand was addressed by July). Compared to 3Q19, 3Q21 grew by 3 percent as channels stocked up for the Diwali quarter amid the supply shortages,” it said.
Moreover, according to the statement, online channels have clocked a record-high 52 percent share, although with a 5 percent YoY shipment volume decline. IDC expects online shipments to surpass offline shipments in 2021.
As per IDC, the overall average selling price (ASP) peaked at $196, driven by price increases and a greater 5G contribution. The sub-$200 segment dropped by 24 percent, while the more-than-$200 smartphones grew 56 percent, signaling a shift to higher price brackets, driven primarily by supply.
“India was the third-largest 5G smartphone market globally with 7 percent of worldwide 5G shipments, shipping 10 million units at an ASP of $401 in 3Q21. From Jan-Sep 2021, 17 million 5G smartphones were shipped to India and are expected to be under 30 million for 2021. The OnePlus Nord CE, iPhone 12, and Galaxy A22 were the most popular 5G models in 3Q21,” it added.