Home >Technology >Gadgets >Smartphone mkt shrinks in Q2, but 40% recovery expected in 2nd half, CMR report

Smartphone shipments in India declined 41% QoQ, and 48% YoY in June quarter due to pan India lockdown, supply chain disruption and limited production, says CyberMedia Research (CMR) in its latest market report, published July 30.

However, the smartphone market has shown positive signs of revival post lockdown. According to CMR, mobile sales will pick up in mid-Q3, fuelled by early online sales which will continue to the festival season. As a result, the market is expected to recover in the second half by over 40%, in comparison to the first half.

"As a consequence of the pandemic, Q2 2020 was, in essence, a lost quarter. While the mobile handset industry faced multiple challenges with respect to their supply and demand side dynamics, the industry looks set on the path to a potential recovery in the coming months," Amit Sharma, Manager-Industry Intelligence Group, CMR said in a statement.

Sharma explains, the initial consumer demand in the unlock phase was driven predominantly through online channels and need for urgent replacements. To overcome the crisis, smartphone companies also switched to innovative hyperlocal delivery models, some of which have the potential to gain permanence.

The cumulative market share of Chinese smartphone brands declined to 73%, going back to Q3 2019 levels. Samsung made the most of the recent challenges faced by Chinese companies and moved up to second position with 24% market share with Xiaomi still at the helm with 30% market.

Samsung Galaxy M11, A21S and A31 contributed to almost 50% of the South Korean company's overall shipments in June quarter.

Though Nokia is the only other non-Chinese brand other than Samsung with a wide range of smartphones available in India market, it's market share declined instead of improving.

Apple remained firm at eighth position in the top ten list on account of demand for the newly launched iPhone SE (2020).

Further, the CMR report shows that feature phone shipments declined 64% YoY in the June quarter.

Anand Priya Singh, Analyst, Industry Intelligence Group, CMR feels, the recent announcements, such as the Jio-Google deal, augur well for the future of the mobile handset industry in India, and will enable the migration of feature phone users to smartphones.

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