Smartphone shipments in 2H 2020 likely to be highest since 2017: Market trackers

Pent up consumer demand post-lockdown and emergence of new use cases such as homeschooling needs are the primary factors for the stellar growth in smartphone shipments this year, analysts say.

New Delhi: Despite slowdown blues, the second half of 2020 could be the best performing period for smartphones with expected shipments at 100 million units, say market trackers.

Having notched up a record 53 million shipments in the July-September period, the current festive quarter is estimated to register another 47 million, as per various estimates. Totalling 100 million, this number would be the highest ever. The sales are expected to beat 2017, the year when the Indian smartphone market was the fastest growing in the world at 14%.

Pent up consumer demand post-lockdown and emergence of new use cases such as homeschooling needs are the primary factors for the stellar growth in smartphone shipments this year, analysts say.


"Smartphone demand has been resilient as we have predicted this earlier in the year.The sell-in has been strong as brands don't want to lose on all important festive seasons. Additionally, the festive offers, new launches and new use cases (education) has all contributed to the growth of the smartphone market and likely to hit 100 Mn units for the first time ever in 2H 2020," Tarun Pathak, associate director at Counterpoint said.

“We are seeing a historic H2 2020, primarily driven by post-pandemic consumer behaviour,” said Amit Sharma, Analyst, Industry Intelligence Group, CyberMedia Research.

“Consumers are dependent on their smartphones for work, learning and entertainment. Amongst value for money buyers, smartphone buying is driven by need, while for premium buyers it is 'revenge buying'. What we are seeing is pent-up demand from urban India, and real growth in aspirational India (Tier -III and beyond),” he said.
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ET had reported that this year’s Navratri-Dusshera sales of smartphones have grown by upto 20%. In the six-day e-commerce festive sale concluded last week, Amazon and Flipkart have sold close to 15 million handsets, according to estimates by research firm TechArc.

Dialling In
Dialling In

However, the overall market is still expected to degrow 10% annually, down from 154 million shipments in 2019 to around 140 million expected this year.

Faisal Kawoosa, founder and principal analyst at TechArc said, this years’ numbers should not be interpreted as actual growth because this has been a peculiar year.

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“Although the recovery in the smartphone market has been faster than any other industry, the high shipments in the second half are because of accumulation of demand from the first half,” he said.
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