Smartphone sales in India cut to half in Q2 2020 – Post Daily

It seems that not everything is good for the smartphone market in India. A new report states that total shipments for the second quarter of 2020 were a 48% drop from last year’s 33 million shipments and affected giants such as Xiaomi, Oppo, Realme and Samsung. However, this is to be expected given the serious global impact of the COVID-19 pandemic.

An exclusive Canalys report states that low demand and supply and production stops due to the launch of COVID-19 led to a drop in shipments. Xiaomi had the lowest drop in market share with a drop of 0.4% compared to 2019. It remained at the top of the charts with a market share of 30.9%, while Samsung faced a large drop of 5.3% in market share.

Smartphone sales: Realme overturned

BBK’s subsidiaries Oppo, Vivo showed a surprising profit in the market share despite the decline in annual growth. Realme recorded a 1.9% increase in market share. On the other hand, Oppo and Vivo showed increasing gains of 3.7 and 3.8% respectively.

However, of the 17.3 million units shipped for the period April to June 2020, Oppo gained significantly over Realme. Oppo recorded 2.2 million shipments and climbed to 4th place.

The reason for the success of Vivo and Oppo could be their aggressive strategy O2O (offline-to-online). Eventually, this benefited the offline network and clearance of inventories during the lockout. The online department, however, experienced a significant decline in smartphone sales.

Canalys Research analyst Adwait said that despite cross-border differences and anti-China sentiment on the internet, the impact on sales is likely to be minimal as companies and retailers promote “Made In India” with 96% of units to be assembled / manufactured locally.

The secret of Xiaomi and Oppo

In addition, he added that competitors such as Samsung, Nokia and Asus were not so aggressive in their pricing strategy. As a result, the chart was completed with Xiaomi at the top of the charts. In terms of shipments, Xiaomi had 5.3 million units. Similarly, Vivo, Samsung, Oppo and Realme accounted for 3.7, 2.9, 2.2 and 1.7 million units respectively.

As restrictions began to ease in May, retailers such as Xiaomi and Oppo turned to imports from China. This is due to interruptions in local production due to new government regulations and labor issues.

Finally, other OEMs such as Apple, OnePlus, Motorola, Asus only had a minimum share of 8.1% combined. Apple, on the other hand, was affected by less than 1.4 million shipments and 20% YoY. With lock restrictions slowly removed and an upcoming one 5G storm, India still has great potential to break away from where it left off in 2019.

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