Shipment company

Second-quarter smartphone sales drop 5% on lower demand

A new report showed that smartphone shipments reached 36.4 million units in the second quarter (Q2) of Indiaa 5% decline from the prior quarter as major brands struggled to switch units as consumer demand waned.

Xiaomi maintained its market-leading position, shipping 7 million units, despite another quarter of year-on-year and sequential declines.

With 6.7 million shipments, Samsung came in second, closing in on Xiaomi.

Remaining in third place, realme shipped 6.1 million units, while vivo and Oppo completed the top five, shipping 6 million and 5.5 million units respectively.

“Major Chinese brands, such as Xiaomi, vivo and OPPO, have struggled with government scrutiny as well as financial issues. But the business impact remained limited, with no major change in supplier shares,” the analyst said. Sanyam Chaurasia.

In the high-end segment, Samsung’s positive reception for its flagship S series boosted its value share, while Apple is using India’s Performance Incentive (PLI) program to manufacture the iPhone 13 locally and support future aggressive pricing, he added.

Smartphone players in India are looking to leverage strong cross-channel collaboration as smartphone inventory reaches an alarming level.

“Brands are using early discount sales, which started in June through the e-commerce channel, to get rid of inventory before the holiday season starts. There will be more of these monsoon season sales on Flipkart and Amazonwith deep discounts to drive demand and prepare for upcoming Q3 launches,” said Chaurasia.

While the second half of the year will not see a surge in pent-up demand like last year, the rebound over the holiday season will be fueled by replacement purchases.

A weaker Indian rupee, rising retail prices and Chinese brand compliance risks are hampering growth in the sub-$200 segment, the analyst said.

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