Supply challenge stifles India smartphone market growth

The supply chain challenge is impacting smartphone market growth. In India, Q3 shipment dropped by 12 percent to 48 million units — after four consecutive quarters of increase, according to IDC.

According to Navkendar Singh, Research Director, Client Devices and IPDS at IDC India, due to supply challenges, Q4 is expected to see a decline, resulting in annual shipment below 160 million in 2021.

“The first half of 2022 will remain challenging, with some easing out expected in the latter half of 2022. Vendors/channels will keep an eye on the over-stocking situation in case demand stays limited due to the price hikes by the suppliers and vendors,” he said.

Despite declining 17 percent in shipment year on year, Xiaomi kept its pole position with 25 percent market share. Its Poco sub-brand, which is sold only online, experienced 65 percent growth.

Samsung dropped by 33 percent but came in at second with 22.3 percent share. The launch of the Galaxy Z Fold3 and Z Flip3 generated great demand but lack of supply curtailed the growth.

Three other China brands — Vivo, Realme and Oppo — completed the top five.

The drop in supply plus growing demand is expected to result in a higher cost for smartphones in the near future.

“IDC believes that a growing dependency on smartphones triggered by remote work and learning, as well as a subsequent requirement for better quality hardware is pushing consumers to spend more. With continued chip shortages and logistics costs, brands are also compelled to expand upwards in terms of price points across channels,” said Upasana Joshi, Research Manager of Client Devices at IDC India.

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