India’s Smartphone Market increased by 7% in 2021: IDC

According to International Data Corp's (IDC) Worldwide Quarterly Mobile Phone Tracker, even as supply and pandemic related challenges created disruptions during 2021, India shipped 161 million smartphones during the year, up by 7% year-over-year.

With 81 million units, the online channel registered 13% year-over-year growth, surpassing the offline channel, driven by heavy marketing and initiatives like multiple sales festivals, attractive financing schemes, cashback & exchange offers, and trade-in programs.

First Quarter of 2022 is expected to remain flat year-over-year amid a low seasonal demand and a mild impact of the ongoing third wave of COVID-19, which will give the brands time to replenish their inventories.

Upasana Joshi, Research Manager, Client Devices, IDC India, said, “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.”

ASPs peaked at $190, growing by 15% annually. The share of the premium segment doubled from a year ago to 4% in 2021, growing by more than 100% annually, largely due to higher Apple shipments. The sub-$100 was the only segment to decline YoY. IDC expects ASPs in 2022 to be high due to the rising cost of components and higher share of 5G smartphones.

Navkendar Singh, Research Director, Client Devices & IPDS, IDC India, said, “Overall, supply challenges and the second wave of COVID-19 severely restricted the market’s ability to achieve double-digit growth in 2021. Consumer demand is lower than expected as we entered 2022, but supply challenges are expected to ease by mid-2022, which should help in maintaining similar growth levels in 2022.”