Smartphones shipments in India plunged by over 27% to 29.6 million in the October-December quarter of 2022, from 40.6 million in the year-ago period, mainly due to inflationary pressures, market research firm IDC said on Friday.
According to the report, dwindling consumer demand due to high inflation remained a challenge throughout the year despite the improved supply situation.
Smartphone shipments in the sub-$300 (about ₹25,000) price segment declined by 15% while mid-premium and premium price segments of $300-500 and over $500 (₹41,000) grew by 20 and 55%, respectively during 2022.
The entry-level smartphones, below ₹12,500 apiece, shrunk to 46% from 54% a year ago.
IDC India, Research Manager, Client Devices, Upasana Joshi said dearth of new launches in sub-$150 (about ₹12,000) smartphone segment limited its growth.
According to IDC Associate Vice President, Devices Research, Navkendar Singh rising prices and excess inventories are expected to be a concern at least during the first half of the current year.
"We should expect a rather difficult and elongated recovery for the smartphone market, as worries around rising prices and excess inventories will remain a concern at least in the first half of 2023.
"Vendors and channel partners need to rethink their plans for their entry-level portfolios, driving 5G device affordability with attractive trade-in programs and financing schemes," Mr. Singh said.
Xiaomi led the market during the quarter as well as on an annual basis with 18.6 and 21% market share despite huge dip in its shipment volume on a year-over-year (YoY) basis.
Xiaomi shipments declined by 38.3% during the December 2022 quarter and 25% on an annual basis in 2022.
Apple maintained its lead in the premium segment with a 60% share followed by Samsung with a 21% share.
Samsung smartphones shipment declined by 22.6% in the December 2022 quarter and 6.6% during the year.
Samsung was second largest player during the quarter as well during the year with 18.4 per cent and 18.1% share respectively in terms of smartphone shipments.
Overall, 201 million mobile phones were shipped in 2022, clocking a 12% annual decline.
"Feature phone shipments stood at 57 million, a drop of 18% YoY. Samsung, Xiaomi and Transsion were the leading companies in the total mobile phone market," the report said.
