Shipment company

India’s smartphone market sees $38 billion in revenue and 11% shipment growth in 2021

Smartphone shipments in India increased 11% year-on-year to 169 million units with market revenue exceeding $38 billion in 2021, according to Counterpoint Research.

According to the latest research from Counterpoint, Indian smartphone market revenue topped $38 billion in 2021, growing 27% year-over-year (YOY).

Shipments rose 11% year-on-year in 2021 to 169 million units, although there was an 8% year-on-year decline in December quarter figures due to supply issues plaguing the smartphone manufacturing ecosystem, he added.

“The Indian smartphone market saw strong consumer demand in 2021, making it the best-performing year. This feat came in a year that saw supply constraints due to a host of reasons, a more virulent second wave of COVID-19, global component shortages and price increases due to these shortages,” said Prachir Singh, Principal Research Analyst at Counterpoint.

Singh added that strong replacement demand fueled by increased affordability of smartphones in the mid-to-high price tiers due to promotions and discounts, as well as better financing options, has led to growth in 11% in 2021.

“Demand exceeded supply in the last two quarters of 2021. During the fourth quarter of 2021, the smartphone market declined by 8% year-on-year. We expect the supply situation to improve in the future and return to normal by the end of the first quarter of 2022,” Singh said.

Xiaomi led the market with a 24% shipment share. The brand also achieved its highest ever share in the premium segment (over Rs 30,000) with a 258% year-on-year growth.

Samsung – which ranked second with 18% market share – recorded its highest ever retail ASP (average selling price) in 2021. The brand topped the Rs 20,000-45 price segment 000 with a share of 28%.

Vivo, Realme and Oppo followed in the tally with growth of 15%, 14% and 10%, respectively.

Among the top five brands in 2021, Realme was the fastest growing brand. It captured the second position in the December 2021 quarter for the first time.

OnePlus recorded its highest shipments ever in India in 2021. It topped the affordable premium segment (Rs 30,000-45,000) and captured the second position in the premium segment (over Rs 30,000) with 19 % departure.

Apple was one of the fastest growing brands in 2021 with 108% year-over-year growth in shipments. It maintained its lead in the premium segment with a market share of 44%.

5G shipments saw 555% year-on-year growth in 2021 and Vivo led 5G smartphone shipments in 2021 with a 19% share, he added.

The overall mobile handset market in India grew by 7% YoY in 2021, with Samsung taking the top spot with 17% market share.

Feature phone shipments reached 86 million units to show steady growth in 2021. itel led the feature phone market with 24% market share, followed by Lava, Samsung and Jio.

“Aggressive offers during the festive season, strong demand for the iPhone 12 and iPhone 13, and increased manufacturing capacity in India have resulted in strong growth. We anticipate strong momentum for Apple in 2022 along with an increased manufacturing and retail footprint,” Counterpoint said.

Counterpoint Research analyst Shilpi Jain said India’s smartphone market retail ASP rose 14% year-on-year in 2021 to its all-time high of $227.

Price increases in the budget segment due to rising component prices, OEMs’ increasing focus on the high-end segment, and increased demand for midrange and high-end smartphones due to increased uses and availability of financing options contributed to the increase in ASP, she added.

“This has driven Indian smartphone market revenue to exceed $38 billion in 2021, registering 27% year-on-year growth,” she said.

Regarding the development of the manufacturing ecosystem, she noted that local manufacturing has rebounded, contributing 98% of shipments in 2021, compared to 90% in 2020.

“The PLI program has been a tremendous boost to India’s mobile manufacturing ecosystem, attracting top players like Apple and Samsung to increase their ‘Made in India’ footprint and make India their export hub. Therefore, handset exports recorded 26% growth in 2021,” Jain said.

Seeing the success of the PLI program in the mobile manufacturing ecosystem, the government has launched similar programs for different product verticals like CIOT and IT hardware, Jain added.

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