India’s Smartphone shipments in the premium segment (over Rs 25,000) grew 18 percent year-on-year (YoY) in the first half of 2020, despite the challenges the sector faced owing to the COVID-19 pandemic-linked national lockdowns, and consequent supply and demand issues, according to a report.

According CyberMedia Research or CMR report, Samsung led the premium smartphone segment with 37 percent market share, followed by Apple with 26 percent share, and OnePlus at a distant third with 15 percent share.

In H1, 2020, the first wave of 5G smartphones debuted in the premium smartphone segment. Many new OEMs made some strategic moves into the premium segment, including the likes of Xiaomi, Vivo, realme, OPPO and Motorola, it said.

Anand Priya Singh, analyst - Industry Intelligence Group (IIG) at CMR, said premium smartphone segment was one of the least affected segments. He added, “Owing to the pandemic, H1, 2020 was a tough period for the overall smartphone industry in general, with multiple challenges. However, the premium segment grew owing to strong consumer demand and good supply-side dynamics.”

Premium mmartphone market (Above Rs 25,000) : Segmental view

* The premium smartphone segment (Rs25,000 – 50,000) is a niche, but hyper-competitive segment, where more OEMs, including the likes of OPPO and Xiaomi are currently competing for greater mind share, and brand share. This segment accounted for 5 percent of the total smartphone shipments in H1, 2020. Samsung Galaxy A71 was the star in this segment, contributing to 19 percent in this segment.

* The super premium smartphone segment (Rs 50,000 – 1, 00,000) saw Apple on top with 56 percent market share, while Samsung was placed second with 34 percent, and OnePlus at third position with 4 percent market share. The Apple iPhone 11 contributed to be the bestseller here, accounting for 39 percent of the shipments. This segment accounted for 2 percent of the total smartphone shipments in H1, 2020.

* The uber premium smartphone segment (above Rs 1,00,000) saw Apple with 67 percent market share, while Samsung was placed distant second with 30 percent market share. Apple iPhone 11 Pro Max contributed to around 40 percent of the shipments in this segment.

Premium smartphone market:

Samsung led the premium smartphone market, with 37 percent market share, majorly to its success of Galaxy A71 and A51, which contributed 38 percent and 13 percent, respectively of its shipments, and a YoY growth of 56 percent. Samsung’s domination of the overall premium smartphone segment was made possible through good supply side dynamics, attractive discounts and smart channel strategies. Samsung also started manufacturing its flagship Galaxy S20 series in India during this quarter.

Apple continued its impressive run in the premium smartphone market, growing by 14 percent YoY and with a 26 percent market share. The iPhone 11 continued to garner some good market response in the initial part of the year. On the other hand, the all-new iPhone SE 2020 is on track to repeat the exceptional performance of iPhone 11. It captured 8 percent market share of the total premium smartphones shipped during Q2.

OnePlus was placed third with 15 percent market share, with the newly launched OnePlus 8 contributing to a majority of its shipments.

Sharma added, “In H1 2020, consumer demand in the premium smartphone segment continued to remain high, and, in fact, fuelled the market growth. This bodes well for H2 2020, and, especially, in the run-up to the all-important festive season. Beyond the incumbents – including Samsung and Apple, aspirational premium brands will seek to make in-roads into the premium segment.”

According to CMR, going forward during the festive season, India’s premium smartphone segment is potentially slated to grow 20 percent YoY in H2 2020, with many new device offerings anticipated from various OEMs.

Indian consumers will stand to benefit from the intense competition, and offerings across online and offline channels.

Samsung and Apple will be in a dead heat in H2 2020, and potentially slated to garner 28-29 percent market share each. Beyond the incumbents, the new premium segment aspirants, including the likes of Xiaomi and OPPO will seek to shake the turf.