Rising disposable income, cheaper internet, and the need to always stay connected are some of the factors that have led the Indian smartphone market to grow into one of the largest smartphone markets in the world. However, compared to other markets across the globe, India’s smartphone penetration rate is still relatively low. The demand for smartphones is likely to grow in the future as a considerable share of the population did not own a phone or were planning to switch from a feature phone to a smartphone.
Despite a slowdown in the global smartphone market in 2019 and impact from the coronavirus pandemic since 2020, sales volume of smartphones reached the highest in the year 2021. This surge in the sales of smartphones was partially fueled by the influx of Chinese smartphone brands that were comparatively cheaper than the other options available on the market. Around 60 percent of the phones sold in India were by Chinese smartphone companies.
Xiaomi was one of the leading market shareholders in the Indian smartphone market. It sold phones under the brand names Mi, Redmi, and POCO. The company was able to achieve this success due to multiple factors such as tailoring its strategy based on the country’s requirements, relocating supply chains to the country, and investing in the domestic distribution network and research and development. Other Chinese original equipment manufacturers (OEMs) present in the Indian market were Vivo, Oppo, and RealMe.
With the arrival of Chinese brands, established Indian smartphone manufacturers were sidelined and lost their market share. To boost localized manufacturing and to increase the value of domestic phone manufacturing in India, the government introduced a production-linked incentive scheme for large-scale electronics manufacturing companies, both local as well as global.
The smartphone sector, in general, is rapidly changing. The average selling price of smartphones in the south Asian country was below 200 U.S. dollars. Over 30 major brands were trying to gain considerable market share in the Indian smartphone market. In such a scenario, smartphone OEMs needed to invest a huge amount of capital. This cut-throat competition led to over 40 companies in the smartphone sector exiting the country, including Sony and HTC.
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In the following 4 chapters, you will quickly find the 25 most important statistics relating to "Smartphone market in India".