Old Delhi, India, October 28, 2022. A man takes pictures with a Samsung mobile phone equipped with multiple cameras.

Photo by Nasir Kachrunur | Getty Images

Canalys reported that the Indian smartphone market was stable in the second quarter, with shipments of 36.1 million units.

That figure was down 1% from a year earlier, much better than the 20% drop in the first quarter. Shipments also fell by 27% and 6% in the fourth and third quarters of 2022, respectively.

“After several troubled quarters, the market is finally gaining momentum heading into the second half of the year,” said Canalys analyst Sanyam Chaurasia. “In the second quarter, macro indicators improved slightly, with manufacturing output rising and inflation falling.”

Compared to the previous quarter, the market grew 18% as inventory levels improved, which Canalys attributed to a better business environment.

“Smartphone vendors are adapting to a dynamic business environment with a focus on ensuring long-term sustainability,” Chaurasia said.

Samsung According to Canalys, its dominance continued in the second quarter, taking about 18% of the market with 6.6 million units shipped. Vivo followed with 6.4 million units shipped, while Xiaomi was third with 5.4 million units shipped.

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Varun Mishra, senior analyst at Counterpoint Research, previously told CNBC that India is already the world’s second-largest smartphone market and could add 300 million new internet users.

Chaurasia said he expects companies to promote their affordable 5G product portfolios during the Cricket World Cup in India in October.

Risks such as uncertainty related to the monsoon season could dampen demand, he noted. However, Chaurasia said the government wanted to boost demand ahead of national elections next year.

Physical sales still matter

Canalys pointed out that Indian consumers tend to prefer to buy mobile phones offline, which has influenced retail strategies in the country.

in April, apple Opened two retail stores in Delhi and Mumbai.Samsung announced in the same month that it would establish 15 high-quality experience stores It will be rolled out in major Indian cities including Delhi, Mumbai and Chennai by the end of the year.

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“Demand for offline consumption has surged in both rural and urban areas due to strong retail consumer preferences,” Chaurasia said.

“On the other hand, online demand has been inconsistent during e-commerce sales, mainly driven by urban consumers.” He added that suppliers are trying to achieve a better balance between offline and online sales.

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