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India—The One Bright Spot in Smartphones Sees 21% Growth in Premium Segment
May 24, 2020
India’s smartphone shipments grew a modest 4% Y/Y in Q120, but the premium segment (>₹30,000 or roughly >US$400) grew 21% Y/Y, driven by new launches and aggressive offers. Although Q1 witnessed the launch of 5G phones and the entry of new players in the premium smartphone segment, growth was less than expected due to lockdowns, resulting in zero shipments in the last week of March. Samsung’s premium shipment recapture the top spot with a 34% share, nudging out Apple. New launches in affordable premium like the Galaxy S10 Lite, Galaxy Note 10 Lite, and the ultra-premium Galaxy S20 series were the main drivers for its growth over the quarter. Samsung became the first vendor in India to launch a 108MP camera with hybrid zoom capability. Price discounts, a favorable exchange rate, and S20 cashback offers all contributed to Samsung’s growth in the segment. The company’s revamped premium offering (₹30,000 – ₹45000 or roughly US$400-$600) with lite variants of flagships Galaxy 10 and Note 10 series were well received. Despite Q1 success, Samsung is unlikely to carry forward this momentum due to shutdown of all retail activities through the first half of Q2.
Table 1: India, Q120 Smartphone Shipments, Share, Growth
May 24, 2020
India’s smartphone shipments grew a modest 4% Y/Y in Q120, but the premium segment (>₹30,000 or roughly >US$400) grew 21% Y/Y, driven by new launches and aggressive offers. Although Q1 witnessed the launch of 5G phones and the entry of new players in the premium smartphone segment, growth was less than expected due to lockdowns, resulting in zero shipments in the last week of March. Samsung’s premium shipment recapture the top spot with a 34% share, nudging out Apple. New launches in affordable premium like the Galaxy S10 Lite, Galaxy Note 10 Lite, and the ultra-premium Galaxy S20 series were the main drivers for its growth over the quarter. Samsung became the first vendor in India to launch a 108MP camera with hybrid zoom capability. Price discounts, a favorable exchange rate, and S20 cashback offers all contributed to Samsung’s growth in the segment. The company’s revamped premium offering (₹30,000 – ₹45000 or roughly US$400-$600) with lite variants of flagships Galaxy 10 and Note 10 series were well received. Despite Q1 success, Samsung is unlikely to carry forward this momentum due to shutdown of all retail activities through the first half of Q2.
Table 1: India, Q120 Smartphone Shipments, Share, Growth
Source: Counterpoint, OLED-A
Figure 1: India, Smartphone Shipment Share Q119-Q120
Source: Counterpoint
Though Apple was second in premium shipment share during the quarter, the iPhone 11 was the best-selling model in the segment, with 17% of total shipments. Apple kept the top spot in ultra-premium (>₹45000 or roughly >$600) with a 55% share, registering 326% Y/Y growth. Overall, the company had a strong Q1, growing 78% Y/Y. Online sales of iPhones surged on platforms like Flipkart and Amazon. Share of online sales reached 40%, the highest level during a non-holiday season. The iPhone 11 replaced the iPhone XR as premium’s best-seller due to no-cost EMI and banking offers bundled with the device; these were Apple-specific promotions given during Flipkart Apple Days and Amazon Apple Day sale.
OnePlus fell to third in the premium segment with 8% share, partly due to seasonal factors with some consumers holding off on purchases while waiting for the upcoming 8-series launch. The 7T continued to be the top-selling model in affordable premium. Competition is intensifying as more OEMs enter the premium market. Realme, vivo and Xiaomi are set to launch a premium devices that include 5G, of high screen refresh rates (180 Hz), faster charging (>55W), super-high resolution cameras and hybrid zoom capabilities to name a few. From: Counterpoint
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