x
Tech

Indian Smartphone Market Reports Flat Growth in 2023

Indian Smartphone Market Reports Flat Growth in 2023
  • Published

The Indian smartphone market saw minimal growth in 2023, with shipments increasing by just 1% compared to the previous year. Despite this overall stagnation, the second half of the year experienced an 11% year-on-year growth, signaling a potential rebound in consumer demand.

Overview of Market Dynamics

A report by the International Data Corporation (IDC) highlighted that consumer demand remained subdued throughout 2023, leading to elevated inventory levels across the industry. However, the market showed signs of recovery in the fourth quarter, with a notable 26% year-on-year growth and 37 million smartphones shipped, attributed partly to the introduction of new smartphone models.

Upasana Joshi, research manager at IDC India, noted that many brands opted to reduce prices and offer additional channel margins in the last quarter to manage inventory levels post the festive season. However, cautious stocking by channels is anticipated in the early months of 2024.

Rise in Average Selling Price (ASP)

The average selling price (ASP) of smartphones witnessed a significant increase in 2023, rising by 14% year-on-year for the third consecutive quarter. This rise in ASP can be attributed to the growing share of smartphones in the premium segment, which expanded from 6% in 2022 to 10% in 2023. Additionally, the proportion of 5G smartphones in total shipments surged to 55%.

Top Players in the Market

Despite a slight decline in market share compared to the previous year, Samsung maintained its leadership position in the Indian smartphone market for the second consecutive year, commanding 17% of smartphone shipments in 2023.

Xiaomi experienced the most significant decline in market share, dropping from the second position to the fourth. Its market share decreased from 17.8% in 2022 to 12.4% in 2023, a 29.6% decline in shipments. However, Xiaomi continued to dominate the entry-level segment, comprising devices priced under $100.

Poco emerged as a standout performer, reporting a remarkable 54.2% year-on-year increase in market share, climbing from 3.2% in 2022 to 4.9% in 2023.

Apple also saw substantial growth, with its market share rising from 4.6% in 2022 to 6.4% in 2023, representing a 38.6% change. The company dominated the super-premium segment (smartphones priced above $800), capturing 68% of the market share.

Navkendar Singh, AVP of client devices research at IDC India, emphasized that while 2023 focused on affordable 5G devices and price corrections, the road to recovery in 2024 appears challenging. Singh highlighted the need for greater efforts, particularly in the entry-level price segment, to drive organic growth in the future.

 

Written By
Bo Wu

Leave a Reply

Your email address will not be published. Required fields are marked *