Overview:

• Sales grow in most regions driven by promotions, sell-in increases ahead of the holiday season
  • Global Handset sales declined 2% MoM in December. China, parts SEA, LA, MEA and Europe all grew driven by the Singles day and Black Friday sales. However, India declined sharply post the festive season in October which drove the market down. Market in US also remained flat MoM, as Apple supply, although improving, remains tight. 
  • Shipments improved MoM and was higher than sales in November. Supply for Apple improved and is likely to improve further in December. Other OEMs also built up some inventory for the sales season in November and December. Sell-in was also higher as many factories close early in December due to holidays and increased production to maintain sufficient inventory. However, shortages continue, and some demand is likely to shift to Q1 2022.
• Apple continues to be #1 Smartphone OEM Globally; Xiaomi enter top 3 in China; Slow start to Jio’s smartphone sales
  • Apple’s share increased further in Nov as it continued to be the #1 OEM Globally as well as in China. It also surpassed Samsung to become the #1 OEM in Europe with sales growing 19% MoM in the region. The increase in share could have been more, if it was not for the lower-than-expected sales in the US because of shortages. Sales in Japan was also affected because of the sim-lock ban imposed by the government.
  • Xiaomi held its share in November. The 37% MoM decline in India post the festive season was offset by a 61% MoM increase in China. Due to its online focus, Xiaomi was the biggest gainer in China’s Singles day sales, which is largely an e-commerce event. China’s top three spots reshuffled again with Xiaomi surpassing OPPO to become the third largest brand in China in November.
  • Jio’s most anticipated smartphone, JioPhone Next went on sales in India in November. Jio was able to capture ~3% of the Indian smartphone market in Nov. The sales were slow primarily because of higher-than-expected price point.
• Apple dominates the US$600-US$799 Price Band, Samsung gains in ultra-premium (US$800 and above)
  • The US$600-US$799 price band gained share in November driven by the iPhone 13, which alone captured close to half of the price-band’s total sales. Apple was the biggest gainer in this price segment, capturing over three-fourths share. The iPhone 13 continued to be the highest selling model globally in November. It also surpassed the iPhone 13 Pro Max to become the highest selling model in the US as well in November.
  • Early adopters prefer the higher-end Pro models and iPhone 13 seems to be picking up now. Also, the availability of iPhone 13 is better than those of pro models.
  • Samsung gained share in the ultra-premium (US$ 800 and above) price segment, driven by the demand for Samsung’s foldables during the Black Friday sales and the improved availability of the S21 series.

Key Takeaways: