The shipment of low-end mobile phones in India dropped by 5% on year in Q3 this year as the smartphone vendors struggled for supply, according to a new report published by market research firm Canalys.
Xiaomi at 24% (which was 2% lower from the year-ago quarter) led the market once again, followed by Samsung at 19% (1% lower from the year-ago quarter) and VIVO at 17% (also down by 1%), the data published by the market research firm stated.
The year-on-year comparison between Q3, 2021 and Q2, 2021 was tough, because the consumer demand started to rise this year after the control of covid-19 , while last year in the same quarter the consumer demand dipped due to the surge in covid-19.
"From the end of June, a surge in demand has swept India, which is set to persist during the festive season. Smartphone vendors have seized the opportunity to push the older stock into the channel ahead of the holiday period," said analyst Sanyam Chaurasia.
But low-end model supply constraints mean shipments have been restricted, and "brands have been forced to use promotions to make their high-end models more appealing," Chaurasia added.
These challenges will persist into Q4, and high component and logistics costs, together with container shortages will result in longer lead times and higher retail prices.
Xiaomi maintained its lead in the quarter by shipping 11.2 million units. Samsung remained second with 9.1 million units and vivo came third with 8.1 million shipments.
Realme remained in fourth place with 7.5 million units, while OPPO finished fifth with 6.2 million units.
"The fight for market share intensifies further in India. Smartphone vendors are using a range of strategies, from extending their product mix to boosting their channel coverage, to increase shipments and value," said research analyst Jash Shah.
Realme is taking a different tack, hoping to undermine high-end vendors with its focus on affordable 5G.
"Its shipments were 70 per cent online, and it shipped around 1 million of its Realme 8 5G," Shah added.