India’s smartphone shipments grew 11% YoY to reach 169 million units during the year 2021, according to the latest research from Counterpoint’s Market Monitor. The shipments, however, declined 8% YoY in the last quarter of the year due to supply issues plaguing the smartphone manufacturing ecosystem.
India’s overall mobile handset market grew 7% YoY in 2021. Samsung captured the top position in the handset market in 2021, taking 17% share. Xiaomi maintained the top position in India’s smartphone market in 2021 with 2% YoY growth. Feature phone shipments reached 86 million units to show flat growth in 2021. itel led the feature phone market, taking 24% share followed by Lava, Samsung and Jio. itel has been leading the feature phone market for the last two consecutive years.
Commenting on the market dynamics, Senior Research Analyst Prachir Singh said, “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. 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% YoY growth in 2021. The demand outstripped the supply in the last two quarters of 2021. During Q4 2021, the smartphone market declined 8% YoY. We expect the supply situation to get better going forward and reach normalcy by the end of Q1 2022.”
ASP goes up, smartphone market revenue crosses $38 billion
As for the competive landscape and ASP, research analyst Shilpi Jain, said, “India’s smartphone market retail ASP (average selling price) grew 14% YoY 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. This resulted in the Indian smartphone market revenue crossing $38 billion in 2021, registering a growth of 27% YoY.”
Make in India is ‘back’
On the developing manufacturing ecosystem, she added, “Local manufacturing bounced back, contributing 98% shipments in 2021, compared to 90% 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% YoY growth in 2021. 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.”
