Smartphone sales in India soared 10% in the April-June quarter, beating general slowdown blues evident in other industries like FMCG and automobiles.
Smartphone sales in India soared 10% in the April-June quarter, beating general slowdown blues evident in other industries like FMCG and automobiles. While several sectors are reeling under demand sluggishness, smartphone sales in the country spiked, riding high on the back of e-commerce, according to market intelligence firm IDC. “The online channel continued its growth momentum fueled by multiple new launches, attractive offers and affordability schemes like EMIs/cashbacks,” Upasana Joshi, Associate Research Manager, Client Devices, IDC India said, in a recent note. Over 69 million mobile phone units were shipped to the country in the second quarter of 2019.
Further, mobile sales in the second half of the year are also expected to go high. But, with the consolidation of top few brands, the smaller players will find it difficult to get a foothold, said Navkendar Singh, Research Director, Client Devices & IPDS, IDC India. The brands which play majorly on online platforms and are e-tailers will continue to see spiked sales due to new launches and price reductions in the last few launches till festive season in October, Singh added.
Not iPhone; these five companies lead mobile sales
For the same quarter, Chinese electronics company Xiaomi is the market leader in terms of mobile sales and had over 28% of the market share. Following this is Samsung, Vivo, Oppo and Realme. In fact, these five companies together have over 85% market dominance, according to the data by IDC.
Meanwhile, sales for fast-moving consumer goods is down to the extent that the biscuit manufacturers have been claiming that even Rs 5 priced biscuits are not moving off the shelves. Recently, Britannia MD Varun Berry said that something is really off with the economy if even Rs 5 priced biscuits are not hitting off. Parle’s category head Mayank Shah joined the chorus and said that “they are on the same page as Britannia”.
On the automobile front, India’s biggest carmaker Maruti Suzuki saw an over 30% dip in its sales. The automobile industry has been facing the headwind of slowdown for over eight months now.