The market for smartphones in India is expected to accelerate, around 200 million deliveries are expected in 2022: market analysts


India’s smartphone industry may have hit speed bumps in terms of component supply bottlenecks, but the resilient sector is projected to see 190-200 million shipments in 2022, with more 5G devices vying for consumer attention.

When the pandemic forced people to stay indoors, smartphones became their window to the world, helping them stay connected with friends, Work From Home (WFH) and even learn new recipes. As people embraced hybrid work models, enjoyed web series and spun countless “reels” to entertain themselves, the demand for smartphones soared, even though supply faced problems.

According to Shilpi Jain, an analyst at Counterpoint Research, the Indian smartphone market has seen a steady growth curve over the past five years, rising steadily to 158 million units in 2019.

“The impact of COVID-19 has resulted in the market experiencing a slight dip showing its resilience. The market is now set for an accelerated growth phase to recognize the true potential of the Indian market in the coming years and to exceed the 200 million mark in 2022. ”said.

CyberMedia Research (CMR) Analyst – Industry Intelligence Group Anand Priya Singh estimates smartphone shipments will be at a similar level of 187-190 million in 2022, with 5G device shipments up 129 percent year-over-year rose from 28 million in 2021 to around 64 million in 2022.

Singh said the number of smartphone shipments rose 11 percent year-over-year, from 150 million in 2020 to 167-168 million in 2021.

Although 5G networks may not be available yet, industry watchers say 5G smartphones are in demand as consumers consider 5G to be one of their top three priorities when buying smartphones.

Madhav Sheth, CEO of Realme India, said talks about 5G technology and devices had been on the rise since 2019 and smartphone makers launched 5G devices in early 2020.

“As 5G tests are planned for 2022 and frequency auctions will probably take place in the second half of 2022, we expect higher demand for 5G devices in the coming year. Realme aspires to be a 5G leader and democratizer in India and therefore will “equip all smartphones over 15,000 rupees with 5G. We are also working to bring this technology into the sub-10,000 rupee segment, “he added.

The global shortage of semiconductors affected the Indian smartphone market in the second half of the year. During the Christmas season and the third quarter, consumer demand exceeded supply.

“We believe shipments could have increased 10-15 percent in the third quarter of 2021. The semiconductor shortage will continue to affect the Indian smartphone market in 2022, but we expect the situation to improve in the second half of the year.” “Said Jain from Counterpoint.

Raghu Reddy, Chief Business Officer of Xiaomi India noted that over the past two years the market has seen a rise in the price of components such as chipsets, batteries and memory chips, which are used by all smartphone manufacturers.

“This in turn had an impact on the price of smartphones and led to an inevitable rise in the price of all SKUs (Stock Keeping Units) … Although there is still a massive gap between supply and demand, we have tried to bridge part of it by we are impressed with our Make in India initiative, “he added.

Electronic component prices rose an estimated 20 percent due to disruptions in the global supply chain due to semiconductor shortages and the COVID pandemic, which restricted the movement of goods.

Realme’s Sheth explained that the smartphone industry has overcome several challenges over the past two years, with the chipset shortage being one of the most recent.

“There was a decrease in shipments in the third quarter of 2021, and a similar decrease is expected in the fourth quarter. Supply chain bottlenecks have also caused brands to postpone new product launches and slightly increase smartphone prices for consumers are, even though the brands have done their best. absorb these internally, “he added.

Sheth said since that shortage began, Realme has been exploring and working on collaborations with chipset manufacturers that can bring processors to us without sacrificing performance. The chip shortage should subside in the second quarter of 2022.

While Xiaomi and Samsung took the first two places in the smartphone market, Vivo, Realme and Oppo took the next three places. OnePlus, Samsung and Apple wooed customers with their premium portfolio.

According to Counterpoint, retail average selling price (ASP) is expected to increase 13 percent year over year in 2021 as smartphone volume moves into higher price segments.

In December, the government approved a Rs 76,000 crore program to boost semiconductor and display manufacturing in the country to position India as a global hub for high-tech manufacturing and attract large chipmakers.

The move would fuel India’s ambitions to be self-employed in electronics manufacturing, involve massive investment and result in 35,000 specialized jobs alongside indirect employment for a lakh.

Other segments such as smart TVs and TWS (earphones) have also seen significant growth due to the increasing affordability of these products.

Smart TVs make up around 85 percent of the entire TV market and the market research company is expecting a further increase.

“According to our forecast, the Indian smart TV market is expected to grow by 30 percent in 2022. The post-pandemic economic recovery and the entry of new players into the market will facilitate that growth, ”Jain said.

The New Year promises to be a treat as consumers not only get access to sleeker, more impressive and powerful smartphones, but also to more IoT (Internet of Things) enabled devices in various price ranges.


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