According to Canalys, a Singapore-based research firm, the Indian smartphone market saw shipments fall by 5% in the second quarter of 2022 compared to the previous quarter. Shipments were 36.4 million units in the second quarter, with major brands struggling to shift units as consumer demand dwindled.
However, on a year-to-year basis, the market remained positive, with shipments increasing 12% on yearly basis. With 7 million units sold, Xiaomi remained the market leader. According to Canalys, Xiaomi faces another quarter of both annual and sequential decline.
Samsung came in second with 6.7 million shipments, while Realme came in third with 6.1 million units shipped. Vivo and OPPO rounded out the top five, with 6.0 million and 5.5 million units shipped, respectively.
“Vendor activity remained muted in Q2, due to falling demand and government scrutiny of Chinese manufacturers,” Canalys Analyst Sanyam Chaurasia said in a press release. “Ballooning inflation hit consumers’ disposable income and vendors are struggling to cover their operating costs. Top Chinese brands, such as Xiaomi, vivo and OPPO, struggled with government scrutiny as well as financial problems,” Canalys added.
According to Canalys, Samsung’s positive reception for its flagship S series increased its value share in the premium segment, while Apple’s iPhone 13 continues to see demand and growth. Local production of the iPhone 13 and aggressive pricing also aided growth.
Customers should expect more discounts, particularly on e-commerce platforms, given the high inventory pileup, according to the research firm.“Vendors are looking to leverage strong channel collaboration as smartphone inventory is getting alarmingly high,” Chaurasia said.“Brands are using early deep discount sales, which began in June via the e-commerce channel, to get rid of stock before the holiday season kicks in,” he added.
Canalys predicts that more monsoon season sales will take place on Flipkart and Amazon, with significant discounts to stimulate demand.“The weakening Indian rupee, rising retail prices and Chinese brands’ compliance risks are hindering growth in the sub-US$200 segment. The domestic economic environment remains cautious in the short term,” the analyst added.