CIOInsider India Magazine

According to the research firm International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker, India's smartphone market grew seven percent year over year (YoY) in 2021, despite supply chain challenges associated with the Covid-19 pandemic. Yet, supply challenges impacting the smartphone manufacturing ecosystem, shipments increased 11 percent YoY to 169 million units in the same year, as per Counterpoint Research's newest report. However, supply chain concerns arose in the fourth quarter, and the market fell by eight percent in the final quarter of 2021. The total number of shipments for the year was 161 million, and while the year started out well, the second wave of Covid-19 slowed overall growth.

In the second part of the year, tight supply resulted in declining inventories across online and offline distribution channels, according to IDC. Due to the festive season, the Indian market witnessed great demand. The move from 4G to 5G, according to IDC, will continue to fuel growth in 2022, but only in the upper and high-tier pricing sectors.

“Consumers continue to demand better features like the camera, battery, and processors over 5G capability in the entry-level price segments. The large feature phone base will remain crucial but elusive to the smartphone market in the absence of any affordable offerings at the entry-level,” Upasana Joshi, Research Manager, Client Devices, IDC India, said.

With that said, here are the top five individual smartphone companies that remain dominant in today’s market.

Xiaomi
In 2021, Xiaomi remained the market leader in India's smartphone market, although its year-over-year growth was only two percent. However, the brand also achieved its best-ever market share in the premium class (phones costing more than Rs 30,000) and experienced a 258 percent increase in this area. Meanwhile, Poco, which IDC classifies as a Xiaomi shipping brand, was the fastest growing online brand among the top five, expanding by 51% year over year.

“Going forward, it will keep focusing on the premium segment and offline expansion,” Counterpoint noted.

Samsung Vs. Realme
Samsung finished second overall in the year, but Realme surpassed it in the fourth quarter. Samsung saw a six percent drop in revenue year over year. According to IDC, supply restrictions were persistent, particularly for the Galaxy A series in the low to mid-price market and foldable devices in the premium segment. Samsung, on the other hand, took the lead in the 5G market thanks to the Galaxy A22, M32, and M42 models.

Vivo
Vivo was third overall, and it, however, suffered a six percent drop in shipping volume. The Y series of the brand remained a big contributor. However, Vivo had supply issues as well, which hampered total growth.

Realme
Among the top five vendors, Realme grew the fastest, with a 26 percent year-over-year increase. It also surpassed Samsung to take second place in the fourth quarter. Realme had a 19 percent market share in the fourth quarter. Intriguingly, Realme's UNISOC-based chipset phones contributed to Q4's success. Realme phone shipments accounted for 60 percent of the brand's overall total, ensuring adequate supplies in the fourth quarter.

OPPO
In 2021, OPPO grew by eight percent YoY, putting it in fifth place. With an 18 percent share of the offline channel, it also surpassed Samsung for the second year in a row.

Xiaomi continued to lead the market in the fourth quarter of 2021, but its annual growth slowed. In Q4, total shipments for the brand totaled 9.3 million units, representing a negative growth of 22 percent. In the same period last year, the company shipped 12 million gadgets.

5G to Drive the Growth of Smartphones
Given the second wave of Covid-19, India had a difficult start to 2021, according to Canalys statistics. However, the market rebounded strongly in the second half of the year, with suppliers shipping 44.5 million phones in the fourth quarter. Vendors, on the other hand, continue to face supply chain issues.

According to the research center, the smartphone market in India will continue to rise in 2022, with demand driven by both replacement needs and new users transitioning to smartphones. This year, 5G, the next generation of mobile telecom networks, is likely to play a bigger role, and it's expected to fuel smartphone industry growth as well.

“Smartphones capable of 5G will fall further in price amid fierce vendor rivalry, but shipments will be stifled in H1 2022 before the component shortage eases. Overall, India will see upward momentum towards future-proof technologies, with smartphones being at the core of the digital ecosystem and growing ever-more essential to the daily lives of Indian citizens,” the analyst said.

This falls true since brands such as Samsung were the most popular brand for 5G smartphone shipments during the fourth quarter of 2021. It also had a 28 percent share in the mid-range segment. Samsung's foldable device shipments (Fold and Flip series) rose by triple digits this year.

With a 19 percent market share, Vivo was the third-best overall brand and the best 5G smartphone brand. However, in the fourth quarter, it fell to fourth place.

"With 5G auction in late 2022 and roll-out thereafter, we foresee greater momentum for 5G smartphone shipments. Smartphone OEMs will prioritize 5G, by leveraging favorable supply side dynamics, and will continue to drive 5G, especially at lower price tiers," said Anand Priya Singh, Analyst- Industry Intelligence, CMR.

Although the country is yet to receive the next-generation wireless technology network, industry observers say that there is a strong demand for 5G devices. 5G technology and gadgets have been a popular issue since 2019, according to Madhav Sheth, CEO of Realme India, with smartphone makers introducing 5G smartphones in early 2020.

"Given that 5G trials are scheduled for 2022, and spectrum auctions are likely to happen in H2 2022, we expect a higher demand for 5G devices in the upcoming year," he added.

In December, the Indian government approved a Rs 76,000 crore (US$ 10.2 billion) program to increase semiconductor and display manufacturing in the nation in an effort to position India as a global hub for hi-tech production and attract large chip companies.
By attracting large investments and establishing 35,000 specialized employment, as well as one lakh indirect jobs, the measure will help India realize its aim of being self-sufficient in electronics manufacturing.