In Short:
Smartphone sales in India slowed down in the June quarter due to heatwaves and elections, leading to an inventory pileup. Top brands like Samsung, OnePlus, and Apple reported a slowdown in shipments. Chinese brands Vivo and Xiaomi performed well during this period. Despite the slowdown, the market saw a rise in average selling prices, mainly driven by the demand for premium phones. Market trackers expect shipments to recover in the third quarter during the festive season.
Smartphone Sales Slowed Down in June Quarter in India
New Delhi: Smartphone sales in India witnessed a slowdown in the June quarter due to heatwaves and the general elections, resulting in an inventory pileup. Market trackers reported a decline of 1-2% in shipments during this period.
Top Brands Affected
Leading brands like Samsung, OnePlus, and Apple experienced a deceleration in shipments in April and May. Sales were impacted by the high temperatures prevailing across the country, leading to decreased footfalls in retail outlets, according to Counterpoint Research.
The market witnessed a slight recovery in June as brands offered aggressive discounts and promotions to stimulate sales.
Inventory Strategy
Market watchers noted that fewer launches took place in the second quarter compared to the previous year as brands focused on clearing existing inventory ahead of the upcoming festive season starting in August. Chinese brands such as Vivo and Xiaomi
Market Trends
Counterpoint Research analyst, Shilpi Jain, mentioned that Xiaomi reclaimed the top position in terms of volumes in the second quarter, primarily due to its offline marketing efforts, surpassing Samsung. Overall, the market experienced degrowth in the June quarter, with premium phones continuing to be popular despite rising average selling prices.
Further Insights
Research firm Canalys also identified Xiaomi and Vivo as the top brands in the June quarter, emphasizing the increase in sales of affordable 5G handsets. Market experts anticipate a shipment recovery in the third quarter during the festive season when brands offer attractive discounts.
While some analysts predict a subdued growth in the smartphone market until affordable 5G offerings below ₹10,000 are introduced, others anticipate a better second half of the year with a focus on volume sales.
Overall, the smartphone market in India is poised for a dynamic period ahead with shifting consumer preferences and market strategies.
