Abstract: Recently, market research institute Counterpoint Research released the 2021 India smartphone market research report, according to the report, 2021 Indian smartphone shipments increased by 11% year-on-year, reaching 169 million units. However, shipments in December 2021 fell 8% year-on-year due to supply chain issues such as missing cores last year for smartphone manufacturing.
Recently, market research institute Counterpoint Research released the 2021 India smartphone market research report, according to the report, 2021 Indian smartphone shipments increased by 11% year-on-year, reaching 169 million units. However, shipments in December 2021 fell 8% year-on-year due to supply chain issues such as missing cores last year for smartphone manufacturing.
△ Indian smartphone market in 2021 (Source: Counterpoint Research Market Monitor; Note: Xiaomi's share includes POCO brand)
In terms of specific manufacturer rankings, Xiaomi ranked first with a market share of 24%, although the market share fell by 2 percentage points year-on-year, but the shipment volume maintained a 2% growth year-on-year. Counterpoint Research said that the shortage of parts in the second half of 2021 affected mass market sales, causing Xiaomi's growth to slow. Xiaomi grew by 258% in the premium market (> INR 30,000, ~$400) in 2021 with the Xiaomi 11x series. Looking ahead, it will continue to focus on high-end market segments and offline expansion.
In second place was Samsung, with shipments down 8% year-on-year and a market share of 18%, down 3 percentage points year-on-year. Counterpoint Research believes that compared to 2020, supply chain disruptions, the absence of a new Note series, a decrease in focus on entry-level segments, and a reduction in the number of releases in mid-tier segments have led to an overall decline in Samsung's mobile phone shipments in 2021. However, Samsung was the top brand in India's 5G smartphone shipments in the fourth quarter of 2021. Its activity to offer the largest frequency band among 5G smartphones in India contributed to this growth. It also leads the market segment of INR 20,000-45,000 (approximately US$267-600) with a 28% share. Samsung's foldable device (Fold and Flip series) shipments increased 388% year-over-year in 2021.
Vivo ranked third, with a market share of 15%, down 1 percentage point year-on-year. Especially in the Indian 5G smartphone market, vivo became the number one 5G smartphone brand in India in 2021 with a share of 19%. Driven by the strong performance of its Y Series and V, it maintained a 2% year-on-year increase in shipments in the Indian smartphone market in 2021. Vivo remains a leader in The Indian offline segment while strengthening its presence in the online segment through its sub-brand iQOO.
Realme ranked fourth with a market share of 14%, up 1 percentage point year-on-year. In terms of shipments, among the top five smartphone brand manufacturers, realme is the fastest growing brand in the Indian smartphone market in 2021, with a year-on-year increase of 20%. It also took second place for the first time in the fourth quarter of 2021.
Counterpoint Research said that realme switched to "Unisoc" chips to solve component shortages, expanded production through cooperation with EMS, focused on the high-end market of the newly launched "GT series", and the high demand for its improved C series and Narzo series, contributed to the high growth of realme smartphone shipments. Going forward, realme aims to offer 5G in all smartphones priced above Rs 15,000 (about $200). It also plans to enter the ultra-high-end market.
OPPO ranked fifth with a market share of 10% and remained unchanged year-on-year. In terms of shipments, OPPO's shipments in the Indian smartphone market increased by 6% year-on-year in 2021. This is due to its leaner product portfolio as it focuses on the mid-range and high-end markets. Especially at the high end, it is the fastest growing brand in 2021.
Overall, among the top five manufacturers, Chinese smartphone manufacturers account for 63% of the Indian smartphone market. However, from the perspective of the changing trend of market share, compared with 2020, only the share of realme has maintained a year-on-year increase, and xiaomi, Samsung, and vivo have all declined. Notably, the share of "others" rose to 19 percent from 14 percent last year. This includes the growth of manufacturers such as Apple and OnePlus.
It should be pointed out that although the OnePlus brand has returned to the OPPO brand, the report of Counterpoint Research still counts the two separately.
Counterpoint Research said OnePus reached its highest ever shipments in the Indian smartphone market in 2021, breaking the 5 million unit mark, driven mainly by the OnePlus Nord series, with a 59% year-on-year increase. It leads the user-affordable high-end market (INR 30,000-45,000, ~$400-600). OnePlus also ranks second in the high-end market (> INR 30,000, ~$400) with a 19% share. Camera innovation will be the focus of OnePlus in 2022.
(Therefore, if you count the share of other domestic mobile phone brands such as OnePus and Meizu, which have not entered the top five, in the Indian market, the share of domestic mobile phone manufacturers in the Indian smartphone market must be more than 63%.) ）
Apple is also one of the fastest-growing brands in 2021 shipments in the Indian smartphone market, with shipments up 108% year-over-year. It maintains its leading position in the high-end smartphone market (> INR 30,000, approximately $400) with a 44% share. Positive quotes during the holiday season, strong demand for the iPhone 12 and iPhone 13, and improved "Made in India" capabilities drove high growth. Counterpoint Research expects Apple's strong momentum in 2022 and an increase in its manufacturing and retail footprint.
At present, in the Indian mobile phone market, feature phones still occupy a large market share. According to Counterpoint Research, India's feature phone shipments reached 86 million units in 2021, with growth unchanged from 2020, with TRANSSION's itel leading the feature phone market, accounting for 24% of the market, followed by Lava, Samsung and Jio. For the past two years, ITEL has been leading the Indian feature phone market.
If you look at the shipments of the entire Indian mobile phone market (including smartphones and feature phones) in 2021, the overall mobile phone market in India increased by 7% year-on-year in 2021. Because Xiaomi, vivo, realme, OPPO and other head of China's domestic mobile phone manufacturers are basically only launching smart phones, so if you look at the shipment of the entire Indian mobile phone market in 2021, the first is Samsung, with a market share of 17%, down 3 percentage points year-on-year; the second is Xiaomi, with a market share of 16%, down 1 percentage point year-on-year; the third is vivo, the market share is 10% as in 2020. Realme, which ranked fourth, had a market share of 10%, an increase of 2 percentage points year-on-year; and in fifth place was transsion's feature phone brand itel, it had a market share of 9%, in line with 2020.
△ Indian mobile phone market in 2021 (Source: Counterpoint Research Market Monitor; Note: Xiaomi's share includes THE POCO brand)
According to the report, transsion group brands (itel, Infinix and TECNO) achieved a 55% year-on-year increase in the Indian mobile phone market in 2021, and exceeded 10 million unit shipments for the first time in a single year. They also climbed to the third place in the entire mobile phone market in India in the fourth quarter of 2021, with itel being the largest player in the feature phone market. Counterpoint Research believes that positive launches with strong value propositions, strong demand in second- and third-tier cities, and hybrid channel strategies are some of the factors behind this growth.
Commenting on market dynamics, Prachir Singh, Senior Research Analyst at Counterpoint Research, said: "The Indian smartphone market witnessed high consumer demand in 2021, making it the best performing year. This feat also occurred in a year of supply constraints for a number of reasons – the second, more severe COVID-19 wave, global parts shortages and price increases due to these shortages. Increased affordability of mid- to high-priced smartphones due to promotions and discounts and better payment options has driven high replacement demand, resulting in a 11% year-over-year increase in 2021. In particular, supply outstrips supply in the second two quarters of 2021. In the fourth quarter of 2021, the smartphone market decreased by 8% year-on-year. We expect supply to get better in the future and return to normal by the end of the first quarter of 2022. ”
Commenting on the competitive landscape and pricing, research analyst Shilpi Jain said: "Retail ASP (average selling price) in India's smartphone market grew 14% year-over-year in 2021 to an all-time high of $227. Rising prices in the budget segment due to higher component prices, an increasing focus on the high-end segment by OEMs, and increased demand for mid-range and high-end smartphones due to increased usage and payment options have all contributed to an increase in the average selling price. This led to the Indian smartphone market revenue topped $38 billion in 2021, up 27% year-over-year. ”
She added that in terms of the developing manufacturing ecosystem, "local manufacturing rebounded, contributing 98 percent of shipments in 2021, compared to 90 percent in 2020." The PLI initiative (the Production Linkage Incentive Scheme for Telecom and Networking Products launched by the Indian government) has played a huge boost to India's mobile manufacturing ecosystem, attracting Apple and Samsung to expand their "Made in India" footprint and use India as their export hub. As a result, India's mobile phone exports increased by 26% year-on-year in 2021. Reflecting the success of the PLI initiative in the mobile manufacturing ecosystem, the Indian government has launched a similar program for different product verticals such as CIOT and IT hardware.
Editor: Chip Intelligence - Langke Sword Source: Counterpoint Research