Indian smartphone market recorded a year-on-year (YoY) growth of 42 percent in October 2020 despite the ongoing pandemic due to COVID-19, according to the International Data Corporation (IDC) Monthly Smartphone Tracker. In Q3 as well, the top five smartphone vendors were Xiaomi, followed by Samsung, Vivo, Realme, and Oppo like the previous quarter in 2020.
Further, a massive 21 million smartphone units were shipped, which is the highest ever October shipments, IDC said in a press statement. This is also the second highest for a month with September 2020 leading with 23 million units. The growth can be attributed to multiple online sale festivals as well as continuing pent up demand from the third quarter (Q3) 2020.
Indian smartphone market grew despite the pandemic
“In 2019, a total of 140 million smartphones were sold in India. IDC expects 2020 to exit with a single digit decline in final consumer sell out. Though first half of 4Q20 will witness high sales owing to festivities, the second half will be lean with a cyclical dip as inventory cycles normalize and stocks get replenished,” Upasana Joshi , Associate Research Manager, Client Devices, IDC India said in a press statement.
When it comes to low-midrange segment, which comprises of smartphones priced between US $100 to $200, it grew by 60 percent YoY acquiring a share of 58 percent of the total market. The growth was mainly driven by shipments of smartphones such as Redmi 9, Note 9, and Vivo Y20. Meanwhile, the premium segment (US$500-$700) registered a multifold growth, thanks to high shipments of Apple iPhone XR, 11 and OnePlus 8.
Notably, the online channels grew 53 percent YoY with 51 percent total share. As for offline channels, a 33 percent YoY growth was recorded, which mainly came from smaller towns and cities. However, supply constraints impacted offline channel sales.
IDC noted that bigger cities such as New Delhi, Mumbai, Bengaluru, Chennai and Kolkata contributed to 57 percent of online share. This doesn’t really come as a surprise given the online penetration in bigger cities is high and many people relied on these channels for shopping during lockdown.
“Online channels fueled growth in US$100-200 price segment, clocking in 93% growth YoY, collectively accounting for almost half of the sales in October,” IDC said in its statement.