As India’s smartphone market registered a massive year-over-year (YoY) growth of 42 per cent in October shipping 21 million units, 25 per cent of the market sat in top tier cities – New Delhi, Mumbai, Bengaluru, Chennai, and Kolkata – registering more than 50 per cent YoY growth in October.
However, the rest of the states (up-country markets) registered slower growth (average 25 per cent), primarily owing to looming economic concerns and consumer spending narrowing to essentials only, according to the International Data Corporation (IDC) India Monthly Smartphone Tracker. The leading 50 cities accounted for 55 per cent demand nationally.
“Despite delayed deliveries due to restrictions in several zones, consumers went for online purchases, especially on third party e-Tailer platforms, registering 23 per cent YoY growth with 50 per cent share,” the report showed.
Bigger cities leaned heavily towards online channels, with 57 per cent online share in the top 5 metros. “But supply constraints remained, impacting offline channel sales as a result of fewer retail walk-ins,” the report added.
While Xiaomi led in 34 of the major 50 cities within the online channel, Vivo led in 44 of the major 50 cities within the offline channel. Half a million 5G devices were sold, with almost 80 per cent from the top 10 cities of India.
“Though 5G is a driver from a technological advancement standpoint, uncertainties on spectrum availability, clear use cases and high prices might restrict its uptake to few bigger cities initially,” said Sachin Mehta, Market Analyst, Client Devices, IDC India.