The Indian smartphone market experienced a 10% decline in shipments during the first half of 2023 compared to the same period in 2022, according to data from the International Data Corporation (IDC). Shipments reached 64 million units in H1 2023, with the second quarter, ending on June 30, seeing a 3% drop to 34 million units compared to the previous year’s quarter. Despite this, the market showed a 10% increase from the preceding quarter that ended on March 31.
The data revealed shifts in the pricing segments, with smartphones priced below $200 accounting for 65% of the market share, down from 70% the previous year. The mid-range segment, priced between $200 and $400, maintained a 22% share. Notably, the mid-to-high-end segment, priced between $400 and $600, grew by 34% year-on-year in Q2 2023, capturing a 5% share. The premium segment, priced above $600, saw the highest growth, with a 75% year-on-year increase, reaching a 9% market share.
Upasana Joshi, IDC India’s research manager of Client Devices, attributed the surge in premium segment demand to accessible financing options. She predicted continued growth in this segment for the upcoming months in 2023.
5G smartphone shipments totaled 17 million units in the quarter, with an average selling price of $366, marking a 3% YoY decrease. Samsung, Vivo, and OnePlus led the 5G segment, holding a combined share of 54%. Among 5G models, Apple’s iPhone 13 and OnePlus’ Nord CE3 Lite were the highest-shipped during the quarter.
Shipments through online channels faced a 15% YoY decline, while offline channels exhibited an 11% growth. Currently, 54% of smartphone sales occur through offline channels, with lower shipments for online-heavy players like Xiaomi and Realme contributing to the online channel’s drop.
As of June 30, Vivo held the highest market share at 16%, followed closely by Samsung at 15.7%, and Realme at 12.6%. Apple accounted for 5.5% of the market share.
Poco showcased the highest growth in shipments at 76.5%, followed by Apple and OnePlus, both at 61.1%.
Looking ahead, Navkendar Singh, AVP of Devices Research at IDC, stated that strong double-digit growth is needed in the coming months to achieve annual growth in 2023, though current prospects seem uncertain. In the run-up to the festive season, brands are expected to drive consumer demand through affordable 5G launches, pre-booking incentives, and loyalty programs coupled with festive discounts.