The Indian smartphone market, which declined 5% in January-March 2022, is likely to remain subdued for the remainder of the year due to lower demand, rising inflation and lengthening smartphone refresh cycles, according to IDC.
India’s smartphone shipments declined for the third straight quarter, shipping 37 million smartphone units in the first quarter of 2022, down 5% year-on-year, according to data released by the research firm.
“The opening of the year was relatively slower compared to the first quarter of 2021 due to the impact of the third wave of COVID, tight supplies especially for the lower priced segments and rising inflation, which led to rising end-user prices. ‘ IDC said.
Navkendar Singh, Research Director, Client Devices & IPDS, IDC India said that the outlook for 2022 remains cautious from a consumer demand perspective. “Due to rising inflation and the lengthening of the smartphone refresh cycle, IDC expects the second quarter of 2022 to remain subdued as smartphone shipments gradually return to normal, resulting in a slower first half of 2022 compared to 72 million shipments in the first semester leads to 2021,” he added.
5G devices accounted for 31% of shipments with an average selling price (ASP) of $375 in Q1 2022. IDC estimates shipments over $300 will be fully 5G by the end of 2022, said Upasana Joshi, research manager, client devices, IDC India.
Overall, ASP continued to rise for the fourth straight quarter, hitting an all-time high of $211, driven by increased prices for both existing and newly launched equipment. The sub-$200 segment struggled as shipments fell 16%, but the mid-$200-$300 segment grew to an 18% share from 14% in the first quarter of 2022. The mid-premium segment ($300-$500) saw peak year-over-year growth of 75%, and the premium segment ($500+) accounted for a 5% share, with 60% of shipments coming from Apple, added IDC.
Xiaomi continued to lead the smartphone market with a 32% share, including the POCO sub-brand, followed by Samsung, Realme, Vivo and OPPO.
