India smartphone market grew 42 per cent with shipments of 21 million units in the month of October – the second highest for a month – driven by multiple online sale events, research firm IDC said on Thursday.
IDC said it expects the smartphone market to see a single-digit decline in final consumer sell out in 2020 on a full year basis.
According to IDC, the growth in October was driven by multiple online sale festivals and continuing pent up demand from the third quarter of 2020, IDC said.
“This is the highest ever October shipments and second highest for a month, following 23 million units in September 2020, an all-time high for a single month,” it added.
Online platforms accounted for 51 per cent share of the shipment, and the channel grew 53 per cent year-over-year (y-o-y). Offline channels, especially in smaller towns and cities, also saw a healthy 33 per cent y-o-y growth, IDC said.
The low-mid range segment (USD 100-200) grew by 60 per cent y-o-y and its share increased to 58 per cent of the total market in the said month, it added.
The premium segment (USD 500-700) witnessed multifold growth with high shipments of the iPhone XR, 11 and OnePlus 8 driven by affordability schemes/offers.
Xiaomi led the tally in October with 24.8 per cent market share, followed by Samsung (20.6 per cent), Vivo (17.8 per cent), Realme (13.8 per cent) and Oppo (12.3 per cent).
Upasana Joshi, Associate Research Manager (Client Devices) at IDC India said in 2019, a total of 140 million smartphones were sold in India.
“IDC expects 2020 to exit with a single digit decline in final consumer sell out. Though the first half of the fourth quarter 2020 will witness high sales owing to festivities, the second half will be lean with a cyclical dip as inventory cycles normalise and stocks get replenished,” she said.
Joshi added that with the smartphone market still concentrated around the leading 50-70 cities of India, the industry must address the untapped potential in the lower tier cities with affordable entry-level offerings to offset the large feature phone base and ensure steady year-over-year organic growth in upcoming years.
IDC India Market Analyst, Client Devices Sachin Mehta said half a million 5G devices were sold, with almost 80 per cent from the top 10 cities of India.
“Though 5G is a driver from a technological advancement standpoint, uncertainties on spectrum availability, clear use cases and high prices might restrict its uptake to few bigger cities initially,” he added.
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