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Economy Business IDC: India smartphone shipment up by 10% to 36.9...

IDC: India smartphone shipment up by 10% to 36.9 million

About 33.5 million units were shipped in the April-June quarter last year. The shipment was also higher by 14.8% sequentially in the June 2019 quarter, IDC said.

New Delhi: Smartphone shipment in India registered 9.9% year-on-year growth to 36.9 million units in the June 2019 quarter and the market is expected to continue its growth trajectory in the second half of the year, according to research firm IDC.

About 33.5 million units were shipped in the April-June quarter last year. The shipment was higher by 14.8% sequentially in the June 2019 quarter, IDC said.

Xiaomi led the tally with 28.3% market share, followed by Samsung (25.3%), vivo (15.1%), Oppo (9.7%) and Realme (7.7%).

A total of 69.3 million mobile phones were shipped to India in the June 2019 quarter, up by 7.6% over the previous quarter.

“India smartphone market will continue its growth trajectory in the second half 2019, but the consolidation of top few brands will continue. This will make it much more challenging for smaller players to find niches of growth,” IDC India Research Director (Client Devices and IPDS) Navkendar Singh said.

Singh noted that a very strong performance in the second half is “essential to bring double-digit Y-o-Y growth”. “We should expect continued aggression by the online heavy brands and e-tailers in the next few months fuelled by new launches and price reductions of last few launches, leading up to the festive season in October,” he said.

Singh said that much more competitive offline market play can be expected going forward, with all the major brands fighting for limited shelf space that will make the retail channel very critical for any brand’s success.

“Despite the efforts towards multi-channel retailing by almost all vendors, the online channel continued its growth momentum fueled by multiple new launches, attractive offers and affordability schemes like EMI/cashback,” IDC India Associate Research Manager (Client Devices) Upasana Joshi said. She added that this resulted in a Y-o-Y growth of 12.4% for the online channel with an overall share of 36.8% of the shipment in June 2019 quarter.

The offline channel, on the other hand, registered a growth of 8.5% Y-o-Y growth.

The overall average selling price (ASP) stood at $159 in the quarter under review with 78% of the market below $200 price segment.

However, the fastest-growing segment was $200-300 with 105.2% Y-o-Y growth. This was mainly due to the demand from customers looking to upgrade, additionally fuelled by China-based brands which are bringing innovations and flagship like design language at mid-price segments, IDC said.

The $400-600 was the second-fastest-growing segment with 16.3% y-o-y growth in the June quarter with OnePlus leading the segment (63.6% share).

The premium segment ($500 and above), Apple cornered 41.2% share.

The feature phone market continued its decline with 32.4 million-unit shipments, registering a drop of 26.3% y-o-y in the June 2019 quarter. This was due to lower shipments of 4G-enabled feature phones with 40.3% Y-o-Y decline in the quarter under review, IDC said.

It added that the 2G feature phone segment also declined as challenges remain for Indian brands along with small players facing heat owing to duty hikes on imports.

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