India’s Smartphone Market is seeing a decline in growth

India’s Smartphone Market is seeing a decline in growth

The Indian smartphone market has experienced a lot of ups and downs in recent times. According to Counterpoint Research, the market hit 158 million units in 2019  after experiencing a steady growth within the preceding five years.

However, the market saw a minor dip of four per cent in 2020 (from 158 million in 2019 to 152 million units) due to the COVID-19 pandemic. This minor dip was proof of the industry’s resilience nonetheless. The pandemic ultimately resulted in a larger demand for digital communication with the use of mobile devices.

In 2020, the Indian smartphone market outperformed the markets in Africa, Latin America, and North America. It became the biggest market in the world second only to China.

What happened in 2021?

While the market remains big, it witnessed another downtime towards the end of 2021. According to another research firm, IDC, the market experienced a YOY decline of 12% in the third quarter of 2021.  Around 48 million shipments were recorded after four consecutive quarters of increase. The report also states that while Xiaomi took a majority of the market share, it recorded a decline in shipments.

According to Upasana Joshi, the Research Manager at IDC, the firm believes that the growing dependency on mobile devices and smartphones for remote learning and jobs is making consumers spend more.

In 2020, 5G smartphones contributed below three per cent of the market share as per reports from Counterpoint Research. The reports also predicted that the market for 5G smartphones and devices will increase above eight times and contribute nineteen per cent to the general smartphone market.

According to the report from IDC, India was the third biggest 5G mobile device market in the world in 2021. It contributed about 7% of 5G shipments globally, with around 10 million units shipped in the third quarter of 2021.

Other Industries connected to the Smartphone Market

As a result of digitalization, almost every segment of the economy is in a way connected to the use of smartphones. These mobile devices are used for buying and selling of regular household items and even food materials. Smartphones are also used for payment of different services, utility bills, and many others.

Another sector that is closely connected to the smartphone market is online gaming. The wide availability of smartphones has affected the growth of online gaming positively. There are thousands of gaming apps available on the Google Play Store and Apple Store. There are also thousands of web-based games.

Online gaming in India includes both fun gaming and gaming for real money. Both types of games are available both on apps and web browsers. Smartphones make it possible for Indians to enjoy online casino games at any time. For example, many people now learn how to play Blackjack online and other games with mobile devices.

Thus, online gaming is largely dependent on the smartphones market. The higher the availability of smartphones, the more the people who can access online games. Therefore, a decrease in the availability of smartphones in the market will also affect online gaming. In the same way, many other e-commerce sectors are encouraged by the availability of smartphones.

Growth Prediction for 2022

Despite the decline in growth during the last quarter of 2021, we can still expect growth in 2022. The market is expected to see 190 to 200 million shipments in 2022 with more consumers opting for 5G devices.

Anand Priya Singh, CyberMedia Research Analyst predicts that smartphones shipments will grow 129 per cent YOY from twenty-eight million in 2021 to about sixty-four million in 2022

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