Smartphone sales in India to decline in second quarter of 2021, study shows

Market research firm Canalys said India 's smartphone market will see a decline in sales in the second quarter of 2021 due to a surge in coronavirus cases and a drop in product launches .

In the long run, the price of smartphones in India will increase, especially for phones below 15,000 rupees. The Indian smartphone market performed well in the first quarter of 2021, growing by 11% , and India has fully recovered from the impact of the epidemic . Xiaomi continues to maintain its market dominance, followed by Samsung, Vivo and Relame .

However, market research firm Canalys predicts that smartphone sales in India will see a sharp drop in the second quarter as the second wave of the epidemic continues to rage .

Smartphone prices will rise in 2021

Canalys analyst Varun Kannan: " Looking ahead to 2021, adverse macroeconomic factors will lead to an increase in smartphone ASPs (average selling prices). Continued tight supply of key imported components will make it increasingly difficult for suppliers to maintain profit margins at current prices. "

He added that rising cost prices have led to an increase in smartphone prices. The increase in smartphone prices in 2021 will hit consumers in the sub-Rs 15,000 smartphone market particularly hard. As many as 81% of smartphones sold in India last year were priced below Rs 15,000 .

Smartphone sales to decline in second quarter of 2021

Canalys expects smartphone sales to drop significantly this quarter . Most people will not be in the market for a new smartphone due to the pandemic . Lockdown restrictions in various regions may hinder the transportation of raw materials and equipment. In addition , e-commerce platforms in some regions are prohibited from delivering non-essential goods , and smartphones happen to fall into this category .

At the same time, the situation in the offline market has not improved, and all non-essential commercial institutions have been required to cease operations . Coupled with the relatively small number of new mobile phones released , these are the reasons for the decline in smartphone sales in the second quarter of 2021 .

At present, the epidemic in India is gradually out of control and the normal lives of local residents have been greatly affected. Under such circumstances, the sales of non-essential items such as smartphones are bound to decline.

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