Despite component crunches worldwide, supply chain issues and the current lockdowns, smartphone shipments in India grew by a record 23% year-over-year, according to a new report by Counterpoint Research. The country saw 38 million smartphone shipments in the first quarter of 2021, the report said, citing new product launches, attractive promotions, financial schemes, and pent-up demand from 2020, as the reasons for the growth. The numbers beat analyst expectations, which had been dampened around February, as companies all around the world were struggling to meet demand due to a shortage of components worldwide.
“Continuing with its stellar run, India’s smartphone market registered a third consecutive quarter of record shipments in Q1 2021, riding on pent-up demand. Consumer confidence also increased due to the beginning of a vaccination drive in the country. But these numbers should be taken with caution as a second and more virulent wave of COVID-19 is currently on in the country and is likely to impact the coming quarters. The consumer demand will take a hit due to the ongoing COVID-19 wave and subsequent lockdowns,” said Prachir Singh, senior research analyst at Counterpoint.
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Further, the report said Chinese smartphone maker Xiaomi retained the top spot, with 26% of the total market share in terms of shipments. Samsung came in at number two with 20% market share, followed by Vivo, Realme and Oppo, who had 16%, 11% and 11% market share, respectively.
Xiaomi recorded a 4% year-on-year growth during the quarter, with the Redmi 9A as its best selling model in Q1. However, Samsung saw a massive 52% year-on-year growth, which Counterpoint said was because of its focus on the budget segment with the new Galaxy M02 series and other devices. Vivo, too, saw a 16% year-on-year growth in the quarter.
The report comes at a time when smartphone makers in India are grappling with supply shortages, and may have to raise prices of phones soon. One of the main reasons for this is the shortage of chips worldwide, something that has affected all electronics companies, including those making smartphones. Other problems include rise in freight prices and more.
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