Smartphone Shipments in India Slip 51 Percent YoY in Q2, Chinese Brands Lose Share: Counterpoint

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Smartphone shipments in India declined by 51 p.c year-over-year (YoY) to simply over 1.eight crore models in the second quarter of 2020 because of the coronavirus-led lockdown, Counterpoint Research stated on Friday. Xiaomi continued its management in the quarter regardless of dealing with provide constraints owing to COVID-19 pandemic and elevating anti-China sentiment. However, Samsung is claimed to have seen the quickest restoration from the pandemic and reached 94 p.c of pre-COVID ranges in the nation. The South Korean firm moved from 16 p.c market share through the March quarter to 26 p.c.

The smartphone market is beginning to attain normalcy after dealing with zero shipments because of the nationwide lockdown in April and registering a gentle decline of 0.three p.c YoY in June, in response to a report by Counterpoint Research. The agency stated that the pent-up demand in addition to a push from manufacturers helped the market enhance its place regardless of ensuing in the numerous dip from its final yr efficiency.

Xiaomi managed to retain its domination in the Indian smartphone market in the second quarter with a market share of 29 p.c, up from 28 p.c reported in the identical quarter final yr however down from 30 percent in the March quarter. Supply chain constraints because of the COVID-19 influence and unfavorable client sentiment in the direction of China did have an effect on its development. However, Counterpoint Research claims that a few of its latest methods labored, and fashions together with the Redmi 8A Dual, Redmi Note 8 Pro, and Redmi Note 8 proceed to draw shoppers.

After Xiaomi, Samsung managed to proceed its second place in the market. The market share of the corporate reached 26 p.c from 25 p.c reported in the identical quarter final yr and 16 p.c through the first quarter this yr. The diversified provide chain helped Samsung obtain quickest restoration among the many key smartphone distributors in the nation. The analysis agency additionally famous that it emerged as the primary model to achieve nearly full manufacturing capability by the tip of June.

Vivo ranked third in the smartphone market with a share of 17 p.c in quarter ending June. It is claimed to have reached 60 p.c pre-COVID ranges. Realme, which is competing strongly in opposition to Xiaomi with its low-margin smartphones, maintained its fourth spot with a share of 11 p.c. This exhibits an increment of three p.c from the 9 p.c share in the second quarter of final yr, but it surely’s down from 14 p.c reported in the March quarter.

Oppo, which was as soon as the dad or mum of Realme, struggled through the quarter because of provide constraints, although it managed to take care of its fifth place with a share of 9 p.c.

Apart from the highest 5 gamers, Counterpoint Research reported that OnePlus regained its high place in the premium market of smartphones over Rs. 30,000 worth section. It is more likely to develop additional with the newly launched OnePlus Nord. Further, Apple stays the chief in the ultra-premium section, which includes telephones over Rs. 45,000 worth.

Chinese contribution declined
Counterpoint Research analyst Shilpi Jain stated in the report that the contribution of Chinese manufacturers in the Indian market declined to 72 p.c in the second quarter from 81 p.c in the primary quarter of this yr.

“This was mainly due to the mixture of stuttering supply for some major Chinese brands such as Oppo, Vivo, and Realme, and growing anti-China sentiment that was compounded by stringent actions taken by the government to ban more than 50 apps of Chinese origin and delay the import of goods from China amid extra scrutiny,” she stated.

The decline in share of Chinese manufacturers is principally because of the India-China border dispute.

“However, local manufacturing, R&D operations, attractive value-for-money offerings, and strong channel entrenchment by Chinese brands leaves very few options for consumers to choose from. Additionally, in the era of globalisation, it is difficult to label a product based on country of origin as components are being sourced from many different countries,” Jain added.

Feature telephones market worst affected because of COVID-19
The report by Counterpoint Research talked about that the function telephone market in India declined by an enormous, 68 p.c YoY in the second quarter as shoppers in the cost-sensitive section diminished discretionary purchases owing to the COVID-19 influence. Itel managed to proceed its management in the function telephone market with 24 p.c share, whereas Lava and Samsung got here at second and third spots with 23 and 22 p.c share, respectively.

Counterpoint Research stated the decline in function telephone shipments in the nation is predicted to spice up the used and refurbished cell phone market in the near-to-mid time period.

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