India's smartphone market logs $38 bn revenue, 11% shipment growth in 2021

India’s smartphone shipments grew 11 per cent year-on-year to reach 169 million units with market revenue crossing $38 billion in 2021, according to Counterpoint Research.

As per the latest research from Counterpoint, India's smartphone market revenue crossed $38 billion in 2021 with 27 per cent year-on-year (y-o-y) growth.

Shipments grew 11 per cent y-o-y in 2021 to reach 169 million units, even though there was 8 per cent y-o-y decline in the December quarter numbers due to supply issues plaguing the smartphone manufacturing ecosystem, it added.

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"The Indian smartphone market witnessed high consumer demand in 2021, making it the best-performing year. This feat came in a year that witnessed supply constraints due to a multitude of reasons – a second and more virulent Covid-19 wave, global component shortages and price hikes due to these shortages," Counterpoint Senior Research Analyst Prachir Singh said.

Singh added that the high replacement demand fuelled by increasing smartphone affordability in the mid and high-price tiers due to promotions and discounts, as well as better financing options, led to an 11 per cent growth in 2021.

"The demand outstripped the supply in the last two quarters of 2021. During Q4 2021, the smartphone market declined 8 per cent y-o-y. We expect the supply situation to get better going forward and reach normalcy by the end of Q1 2022," Singh said.

Xiaomi led the market with 24 per cent shipment share. The brand also reached its highest-ever share in the premium segment (over Rs 30,000) with 258 per cent y-o-y growth.

Samsung - which ranked second with 18 per cent share - registered its highest-ever retail ASP (average selling price) in 2021. The brand led the Rs 20,000-45,000 price segment with a 28 per cent share.

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Vivo, Realme and Oppo followed in the tally with 15 per cent, 14 per cent and 10 per cent growth, respectively.

Among the top five brands in 2021, Realme was the fastest growing brand. It captured the second position in the December 2021 quarter for the first time.

OnePlus registered its highest-ever shipments in India in 2021. It led the affordable premium segment (Rs 30,000-45,000) and captured the second position in the premium segment (over Rs 30,000) with 19 per cent share.

Apple was one of the fastest growing brands in 2021 with 108 per cent y-o-y growth in shipments. It maintained its lead in the premium segment with a 44 per cent share.

5G shipments registered 555 per cent y-o-y growth in 2021 and Vivo led the 5G smartphone shipments in 2021 with a 19 per cent share, it added.

India’s overall mobile handset market grew 7 per cent y-o-y in 2021 with Samsung capturing the top position with 17 per cent share.

Feature phone shipments reached 86 million units to show flat growth in 2021. itel led the feature phone market with 24 per cent share, followed by Lava, Samsung and Jio.

"Aggressive offers during the festive season, strong demand for the iPhone 12 and iPhone 13 and increased ‘Make in India’ capabilities drove high growth. We expect strong momentum for Apple in 2022 as well with increased manufacturing and retail footprint," Counterpoint said.

Counterpoint Research Analyst Shilpi Jain said India’s smartphone market retail ASP grew 14 per cent y-o-y in 2021 to reach its highest-ever at $227.

The price hikes in the budget segment due to component price rise, increasing focus of OEMs on the premium segment and increased demand for mid-range and premium smartphones due to increasing uses and availability of financing options contributed to the increasing ASP, she added.

"This resulted in the Indian smartphone market revenue crossing $38 billion in 2021, registering a growth of 27 per cent y-o-y," she said.

On developing manufacturing ecosystem, she noted that the local manufacturing bounced back, contributing 98 per cent shipments in 2021, compared to 90 per cent in 2020.

"The PLI scheme has been a great booster for the Indian mobile manufacturing ecosystem, attracting top players like Apple and Samsung to increase their ‘Make in India’ footprint and make India their export hub. Therefore, handset exports saw 26 per cent y-o-y growth in 2021," Jain said.

Seeing the PLI scheme's success in the mobile manufacturing ecosystem, the government has launched similar schemes for different product verticals like CIOT and IT hardware, Jain added.

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