Due to nationwide production shutdowns, nearly 45 days of production and sales losses, India’s total smartphone shipments for the April to June quarter fell by 41% from the previous month. According to CMR’s review report on the Indian mobile phone market for the second quarter of 2020, shipments fell 41% year-on-year. However, the market may recover in the second two quarters of this year.
“The second quarter of 2020 is a period of obvious market chaos and turmoil. The dynamics of both supply and demand have been disrupted. That is to say, this epidemic has promoted the rise of new and innovative hyperlocal delivery models-brand Serve the consumers they are in. The initial consumer demand in the second quarter was limited to emergency replacements or the need for assistive devices to facilitate learning at home (LFH).” said Prabhu Ram, head of the CMR Industry Intelligence Group (IIG).
With the successful sales of Redmi 8A Dual, Redmi 8 and Redmi Note 8 (accounting for more than 60% of total shipments), Xiaomi remains the market leader with a market share of 30%. According to its strong supply chain, Samsung has a 24% market share, an increase of 8% from the previous quarter. Samsung Galaxy M11, A21S and A31 accounted for nearly 50% of total shipments. On the other hand, Vivo’s market share in the second quarter remained unchanged at 17%, with Y17 and Y91i and the newly released Y50 accounting for more than 55% of its total shipments. Since entering the Indian market, Realme has witnessed a 2% drop in its market share from the previous month. OPPO’s market share also fell by 3% from the previous month. The reason it ranks fifth in the rankings is the import of smartphone models (such as A31, A1k and the newly launched A12). Due to strong demand for iPhone SE (2020), Apple is ranked eighth in the top ten smartphone rankings.
“Due to this pandemic, the second quarter of 2020 is essentially a loss-making quarter. Although the mobile phone industry faces multiple challenges in the dynamics of supply and demand, the industry appears to be on the path to potential recovery. CMR Industrial Intelligence Department Manager Amit Sharma said: “In the unlocking phase, the initial consumer demand is mainly driven through online channels and is an urgent need for replacement. “
Even four of the five top manufacturers are occupied by Chinese original equipment manufacturers, and their cumulative market share has fallen from 81% in the previous quarter to 73% from April to June. Samsung can control the lost market share with its strong supply chain. Sharma added: “It remains to be seen whether Samsung can maintain its market performance in the next few quarters, attract consumer demand, compete with Chinese smartphone brands and challenge its dominance.”
Improvements in the third quarter
According to early online sales and upcoming holidays, the smartphone market may recover in the third quarter of 2020.
“We believe that in the second half of 2020, it will be possible to return the smartphone market to normal. This will be driven by consumers’ indulging in the high-end smartphone segment of’revenge purchases’ and mainly due to the’value for money’ equipment upgrade demand. Under the new normal, collaboration, content creation and content consumption will all increase significantly. This will drive consumer demand for new smart phones.”
Anand added: “We believe that recent announcements, such as the deal with Jio-Google, herald the future development of the Indian mobile phone industry and are expected to enable the migration of feature phones to smartphone users, with a focus on improving affordability.” CMR Industry Priya Singh, Intelligence Unit Analyst.
During this period, smart phone brands will focus on demonstrating their consumer-centric value proposition, focusing on the hyper-local delivery model, and launching more 5G-enabled smart phones.