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The Indian smartphone market registered a record growth in shipments in October driven by multiple online sales festivals and pent-up demand according to the International Data Corporation (IDC) India Monthly Smartphone Tracker.
As per the report, India's smartphone market registered a year-over-year (YoY) growth of 42 per cent in October with 21 million units shipped.
“The growth was driven by multiple online sale festivals and continuing pent up demand from 3Q20. This is the highest ever October shipments and 2nd highest for a month, following 23 million units in September 2020, an all-time high for a single month,” IDC said.
Online channel contributed 51 per cent to the market share while offline channels, especially in smaller towns and cities, also saw a healthy 33 per cent YoY growth.
Growth region
Top tier cities, namely New Delhi, Mumbai, Bengaluru, Chennai, and Kolkata accounted for 25 per cent of the market, registering over 50 per cent YoY growth in October. The leading 50 cities of India accounted for ~55 per cent demand nationally, as per the report.
Third-party e-Tailer platforms also registered a 23 per cent YoY growth. As for price trends, the low-midrange segment (US$100-200) grew by 60 per cent YoY contributing 58 per cent to the total market. As for brands, Xiaomi, Vivo, and Samsung led with the Redmi 9, Note 9, and Vivo Y20 as the top models sold.
“Half a million 5G devices were sold, with almost 80% from the top 10 cities of India. Though 5G is a driver from a technological advancement standpoint, uncertainties on spectrum availability, clear use cases and high prices might restrict its uptake to few bigger cities initially," said Sachin Mehta, Market Analyst, Client Devices, IDC India.
Upasana Joshi , Associate Research Manager, Client Devices, IDC India said, “IDC expects 2020 to exit with a single digit decline in final consumer sell out. Though first half of 4Q20 will witness high sales owing to festivities, the second half will be lean with a cyclical dip as inventory cycles normalize and stocks get replenished. With the smartphone market still concentrated around the leading 50-70 cities of India, the industry must address the untapped potential in the lower tier cities with affordable entry-level offerings to offset the large feature phone base and ensure steady year-over-year organic growth in upcoming years
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