Smartphone sales grow just 2% in Jan-Mar quarter
CHENNAI: India’s smartphone market taped among its lowest year-on-year (YoY) growths in the January-March quarter due to the combined effect of the Omicron wave, macro-economic headwinds brought on by the Russia-Ukraine war, and part supply issues. Shipments in this period recorded a growth of just 2-3% from the exact same quarter of the previous year when pent-up need was high and the marketplace was riding on a bumper joyful season.
While it is not a healthy sign for the Indian mobile phone market, which recorded double-digit growth during the pandemic, the most recent trend remains in line with the global smartphone market that has declined in current quarters due to chipset shortage and supply chain concerns. Vendors shipped around 38 million smartphones in India in first quarter (Q1) of calendar 2022– simply 2% more than the previous year as leading vendors suffered from periodic supply problems, research company Canalys stated in a note on Friday.
< img alt =" Page-15 Graphic-5" msid =" 91061918" width =" 600 "title placeholdersrc =" https://bharatsuchana.com/wp-content/uploads/2022/04/oHOXAI.gif" imgsize =" 23456 "resizemode =" 4" offsetvertical="0" placeholdermsid type =" thumb" src="https://static.toiimg.com/thumb/imgsize-23456,msid-91061918,width-600,resizemode-4/91061918.jpg" data-api-prerender =" true" > Xiaomi hung on to top place with 8 million shipments, regardless of another quarter of consecutive decline. Samsung came 2nd with 6.9 million units, and Realme delivered fastest development among the leading five suppliers, with shipments up 40% YoY at six million units. Not simply chipsets, however a few other smartphone electronic components too remain in brief supply. “While the majority of the world’s markets battled the third wave of Covid in Q1, the fairly weaker effect on India need to have helped it go back to development quickly. Supply, nevertheless, stayed the biggest challenge for the leading vendors, such as Xiaomi and Vivo, and they struggled to secure elements for their volume-driving low-end models,” Canalys analyst Sanyam Chaurasia said. “On the other hand, brand names such as Realme, Tecno and Itel did well with strong supply in the lower-end models,” he added.
IDC anticipates 2022 to end with single-digit development, with a most likely rise in demand in the 2nd half as the market goes into the festive season. The international research study company said its initial estimates show that the start of 2022 seems silenced with flat or unfavorable development resulting from a cyclic dip in need for January-March this year and low market buoyancy. “The materials did improve as compared to previous quarters, but not completely dealt with,” IDC research supervisor Upasana Joshi said.
According to quotes by Counterpoint Research, the Indian smartphone market will decline by 5% YoY in Q1. “The quarter began on a slow note due to the Omicron wave and got later on. Nevertheless, the component issues had a say throughout much of the quarter, which was one of the major factors for the decline,” Counterpoint research study director Tarun Pathak stated.
There was a component of suppressed need during Q1 in 2021 even after the joyful season. This caused a record-breaking very first quarter in 2015, and analysts state the decline this year can likewise be associated to this high base in Q1 of 2021.
” The greatest difficulty suppliers will face in 2022 will be keeping gadget price,” said Chaurasia of Canalys. “Oil costs in India are at an all-time high and wholesale inflation stays raised. Volatility in foreign exchange rates and greater functional expenses due to inflation will put further pressure on suppliers to keep success.”
Published at Sun, 24 Apr 2022 22:30:00 +0000
