India’s Smartphone Market Logs $38 Billion Revenue, 11% Shipment Growth in 2021

According to Counterpoint Research, India’s smartphone shipments increased 11% year over year to 169 million units, with market revenue exceeding USD 38 billion in 2021.  India’s smartphone market revenue would surpass USD 38 billion in 2021, representing a 27% Y0Y increase. Despite an 8% YoY dip in the December quarter data due to supply challenges afflicting the smartphone manufacturing ecosystem, shipments rose 11% YoY in 2021 to reach 169 million devices.

Xiaomi was the market leader, accounting for 24% of all shipments. With 258% YoY increase. In 2021, Samsung, which came in second with an 18% market share, had its highest-ever retail Average Selling Price (ASP).  Vivo, Realme, and Oppo came in second, third, and fourth, with 15%, 14%, and 10% growth, respectively. Realme was the fastest growing brand among the top five brands in 2021. In India, OnePlus recorded its highest-ever shipment volume in 2021. It was the market leader in the affordable premium segment and came in second in the premium segment with a 19% share.  With a 108% YoY increase in shipments, Apple was one of the fastest growing brands in 2021. With a 44% share of the premium market, it maintained its position.

In 2021, 5G shipments increased by 555% YoY, and Vivo lead the 5G smartphone shipments with a 19% share.  India’s overall mobile handset market rose 7% YoY, with Samsung claiming the top spot with a 17% share.  Shipments of feature phones reached 86 million units in 2021, with no signs of slowing. With a 24% market share, it led the feature phone market, followed by Lava, Samsung, and Jio.

According to Counterpoint Research Analyst Shilpi Jain, India’s smartphone industry retail ASP climbed 14% year over year in 2021, reaching a new high of US$ 227.  The increasing ASP was related to price hikes in the budget segment due to component price increases, OEMs’ greater attention on the premium segment, and higher demand for mid-range and premium handsets due to increased uses and availability of financing alternatives, she added. “This resulted in the Indian smartphone market revenue crossing USD 38 billion in 2021, registering a growth of 27 per cent y-o-y,” she said. She added that, in terms of the emerging manufacturing ecosystem, local manufacturing has recovered, producing 98% of shipments in 2021, compared to 90% in 2020.

“The PLI scheme has been a great booster for the Indian mobile manufacturing ecosystem, attracting top players like Apple and Samsung to increase their Make in India’ footprint and make India their export hub. Therefore, handset exports saw 26 per cent y-o-y growth in 2021,” Jain explained. Following the success of the PLI programme in the mobile manufacturing ecosystem, the government has introduced similar schemes for other product verticals such as CIOT and IT hardware.