Lockdown Declined 2020 Smartphone Sales Nearly 2% – IDC Report

According to the International Data Corporation (IDC), the smartphone market, which has been growing steadily over the past few years, fell 2% year-on-year in 2020. The report published on Monday states that smartphone sales spurned almost 2% to 150 million units last year from January to December. This is the first time when the Indian Smartphone market witnessed its decline in 2020. The coronavirus pandemic, lockdown, and various restrictions in the entire country led to the dip in the smartphone market. The report states –“Stay-at-home mandates, remote work, remote education, travel restrictions, and manufacturing shutdowns led to a sluggish H1’20 (-26% YoY decline), particularly impacting 2Q20. However, H2’20 recovered, with 19% YoY growth, as markets reopened gradually.” Also Read – Samsung Reigns Supreme, Retains Top Spot in Global Smartphone Market in 2020

However, after everything in the chaos in 2020, the smartphone market picked up gradually. According to IDC’s Quarter Mobile Phone Tracker, retail sales gradually picked up during the October and November pre-Diwali weeks in 2020. During this time, the offline channel grew by 5% annually. During the festive quarter (October-December), there was a record 45 million (4.5 million) device shipments, with an annual growth of 21%. Also Read – OnePlus Nord N10 5G Price and Specifications Leak – Check Details

Navkender Singh, Research Director, Client Devices & IPDS, IDC India said: “The rebound of the smartphone market in the latter half of 2020 underscores the importance of devices in our day-to-day lives. In 2021, IDC expects the smartphone market to grow in high single-digit YoY, driven majorly by upgrading consumers, in the mid-range segment and affordable 5G offerings (~US$250). Also, revamped offline channel play is anticipated, to bring back growth in the very important brick and mortar counters for long term sustainability.” Also Read – Indian Smartphone Market Grew 5 Per Cent in Second Quarter: CMR

IDC also noted that 5G smartphone market increased towards growth and crossed three million in 2020. The reason behind the improvement in the market is the Chinese OEM’s rolling out aggressively throughout the year including Xiaomi’s Mi 10i at a <US$250 price point.

“As more 5G devices enter in 2021, the ASP for smartphones is expected to rise. IDC expects vendors to launch 5G devices at multiple price points backed by aggressive promotions, as 5G currently remains a novelty rather than a necessity to most,” says Upasana Joshi, Associate Research Manager, Client Devices, IDC India.