India's smartphone market experienced a remarkable recovery in 2021 with a record 162 million shipments.

• Despite the challenges posed by the pandemic, smartphone makers managed to ship a record 162 million devices in the previous year.
• Despite India facing a devastating second wave of Covid-19 in 2021, resulting in lockdowns and supply chain disruptions, the country has still experienced growth.
• According to Canalys Analyst Sanyam Chaurasia, smartphone shipments hit record levels due to the vaccination rollout, market reopening, and pent-up demand.

According to research firm Canalys, India's smartphone market experienced a robust revival in 2021 and registered a 12% increase from the previous year.

Despite the challenges posed by the pandemic, smartphone makers managed to ship a record 162 million devices in the previous year.

Despite a challenging supply chain, smartphone vendors shipped 44.5 million devices in Q4 for 2% growth, following a strong comeback in Q3, according to a report by a research firm on Monday.

In 2021, Chinese smartphone manufacturers held the top five positions, with Xiaomi leading the way. Samsung, a South Korean phonemaker, took second place, while vivo, another Chinese manufacturer, came in third. Shenzhen-based Realme finished in fourth place, but for the first time in India, managed to secure third place in the fourth quarter.

Despite India facing a devastating second wave of Covid-19 in 2020, resulting in lockdowns and supply chain disruptions, the smartphone industry experienced growth.

Sanyam Chaurasia, a Canalys analyst, stated that vendors had to adapt to the volatile environment by diversifying their supply chains and expanding their product offerings.

Due to the vaccination rollout, market reopening, and pent-up demand, smartphone shipments reached record highs for the year.

Realme’s tremendous growth

Realme experienced the most significant growth in 2021, both in terms of full-year and quarterly performance.

For the full year, Realme experienced a 25% increase in shipments, reaching a total of 24.2 million units.

In the fourth quarter, the Chinese company experienced a 49% annual growth, while the other four brands suffered a decline in growth.

Chaurasia stated that Realme's record shipment total was due to advancements in planning and stock management, resulting in a sufficient supply of affordable smartphones like Narzo 50A and C11.

Vivo held onto third place in 2021, with Realme closely following behind at 15% market share, just 1% less than Vivo. OPPO came in fifth with a 12% market share.

Upcoming trends

Chaurasia stated that growth will occur this year due to replacement demand and new customers switching to smartphones.

New players may challenge the competition for market share as low-end players gained traction in the fourth quarter of last year, according to Canalys.

Chaurasia stated that JioPhone Next, which aims to upgrade feature-phone users through disruptive financing options, had a successful launch with several million units sold. Meanwhile, Infinix and Tecno effectively utilized brand promotional campaigns on Amazon and Flipkart, as well as increasing brand recognition on social media platforms.

In the fourth quarter, the growth rate of the brands was 126%, while the annual growth rate was 111%.

This year, India is predicted to experience a significant digital transformation, according to the research firm.

According to Chaurasia, 5G spectrum auctions with new radio frequency ranges will be held in 2022, making 5G significantly more accessible in terms of coverage and price.

The price of 5G-enabled smartphones will decrease due to intense competition among vendors, but shipments will be restricted in the first half of 2022 until the component shortage is resolved.