India’s smartphone shipments drop for the third consecutive quarter, falling 19% YoY: Report

India’s smartphone shipments dropped for a third consecutive quarter, despite 5G smartphones shipments growing to contribute 43% of the market

Updated - April 28, 2023 05:12 pm IST

Published - April 28, 2023 12:30 pm IST

Indian smartphone market recorded its highest-ever drop in Q1 2023, a decline of 19% year-on-year between January and March 2023.

Indian smartphone market recorded its highest-ever drop in Q1 2023, a decline of 19% year-on-year between January and March 2023. | Photo Credit: Reuters

Indian smartphone market recorded its highest-ever drop in Q1 2023, a decline of 19% year-on-year between January and March 2023. This is the third consecutive quarter to witness a decline, with shipments reaching over 31 million units, a report from Counterpoint said.

The slowdown in demand is being attributed to high inventory build-up carried over from 2022, growing customer preference for refurbished phones, and a pessimistic channel view, the report said.

And with 5G smartphones contributing a record 43%, Samsung maintained its top position in the Indian market with a 20% share in Q1 2023.

Samsung’s 5g-capable A series performed well in the offline market contributing 50% of the shipments and its ultra-premium segment grew 247% driven by the success of its S23 series.

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OnePlus, meanwhile, emerged as the fastest-growing brand with a 72% YoY growth in Q1 2023. Driven by strong demand in its Nord and 11 series, the OnePlus Nord CE 2 emerged as the best selling model in its category.

Apple also recorded a 50% YoY growth and grabbed 6% of the market share. The brand maintained its lead in the premium segment and the ultra-premium segment. And, with the opening of its own retail stores it is further expected to strengthen the brand’s image and growth.

Vivo maintained its second position in terms of shipments with a 17% market share, despite a 3% YoY decline. The company managed to maintain its place of importance in the market with the help of its robust omnichannel presence and cost-effective pricing, the report said. Vivo also managed to be the leading choice of consumers in the affordable premium segment capturing 40% of this market driven by its V series.

Xiaomi, however, witnessed a significant decline failing to the third spot with a 16% market share. The brand suffered a 44% YoY decline, its largest, due to weak demand in the sub ₹ 10,000 segment, more demand in offline channels and a confusing portfolio.

Oppo meanwhile recorded a 9% YoY growth with a 12% market share. The brand has been consistently expanding its shipments in the high-tier segments with a focus on the upper mid-tier where it witnessed 144% YoY growth driven by its F series.

“We are observing a change in consumer behaviour – demand is now concentrated around promotional periods. The beginning of the quarter saw a surge in demand across channels around the Republic Day sales period”, Senior Research Analyst Shilpi Jain said.

“The premium segment’s growth is reducing the mid-tier share as consumers are upgrading to higher-priced smartphones. The sub-INR 10,000 price band continued to decline in Q1 2023, with its shipments falling 9% YoY. This segment is suffering declining demand due to an elongated replacement period, declining feature phone-to-smartphone migration and lower presence of hero models”, Senior Research Analyst Prachir Singh added.

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