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The Indian smartphone market saw shipments fall by 5 per cent in the second quarter of 2022 compared to the previous quarter, according to Canalys, the Singapore-based research firm. Shipments in the second quarter stood at 36.4 million units, with major brands struggling to shift units as consumer demand dwindled. But on a year-to-year comparison, the market was still positive with shipments increasing 12 per cent on a yearly basis. Xiaomi remained the market leader with 7 million units. However, Xiaomi continues to face another quarter of both annual and sequential decline, according to Canalys.
Samsung was a close second with 6.7 million shipments, while realme came in at number three with 6.1 million units being shipped. Vivo and OPPO completed the top five, shipping 6.0 million and 5.5 million units respectively.
“Vendor activity remained muted in Q2, due to falling demand and government scrutiny of Chinese manufacturers,” said Canalys Analyst Sanyam Chaurasia in a press statement. “Ballooning inflation hit consumers’ disposable income and vendors are struggling to cover their operating costs. Top Chinese brands, such as Xiaomi, vivo and OPPO, struggled with government scrutiny as well as financial problems,” he added.
According to Canalys, in the premium segment, Samsung’s positive reception for its flagship S series boosted its value share, while Apple’s iPhone 13 continues to see demand and growth. Local manufacturing of the iPhone 13 and aggressive pricing also helped boost growth.
But given the high inventory pileup, customers should expect some more discounts, especially on e-commerce platforms, according to the research firm. “Vendors are looking to leverage strong channel collaboration as smartphone inventory is getting alarmingly high,” said Chaurasia. “Brands are using early deep discount sales, which began in June via the e-commerce channel, to get rid of stock before the holiday season kicks in,” he added.
Canalys predicts there will be more of these monsoon season sales on Flipkart and Amazon, with significant discounts to stimulate demand. “The weakening Indian rupee, rising retail prices and Chinese brands’ compliance risks are hindering growth in the sub-US$200 segment. The domestic economic environment remains cautious in the short term,” the analyst added.
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