31 July 2019
Indian smartphone market saw record shipment of 46.6 million units in the previous quarter that ended in September 2019. These numbers are reported by IDC in its Quarterly Mobile Phone Tracker report for Q3 2019. It is a 26.6% growth from the second quarter and a 9.3% growth from the same quarter last year.
The report mentions that there are multiple reasons behind such impressive growth in smartphone shipments. These include multiple festive season sales by online shopping portals, the launch of new smartphones, and price drop on various existing models by brands.
Upasana Joshi, IDC India's Associate Research Manager for client devices said,
“The continued aggression by the online platforms with attractive cashback and buyback offers as well as affordability schemes like no-cost EMIs and financing options were key in taking the share of the online channel to a record high of 45.4% with year-on-year growth of 28.3%."
The growth was seen at the individual smartphone brand level as well. Realme saw the biggest growth with a whopping 401.3% improvement on a Year-on-Year basis with a market share of 14.3% in the third quarter. Xiaomi continues to be the Indian smartphone market leader as it acquired a share of 27.1%. It was followed by Samsung and Vivo with 18.9% and 15.2% market share respectively.
Interestingly, Samsung is the only brand in top five that saw a shipment decline (-8.5%) when compared with the same quarter from last year The reason behind the drop is said to be "the lag between older Galaxy A series (Galaxy A10, 50, etc.) and the refreshed Galaxy As (Galaxy A10s, A50s, etc.) series just before the Diwali quarter".
Lastly, the IDC report mentions that offline retailers continue to struggle as they saw a YoY drop of 2.6%. They did try to match discounts and cashback offers provided by online sellers but fell short. But as Samsung and various other smartphone brands have decided to release their phones in the offline space at the same time and price, we can expect to see some improvement in the future.