Indian Smartphone Market Remains Flat in Q3 2023 with 44 Million Shipments
The Indian smartphone market has shown no significant growth in Q3 2023, as it remained flat compared to the previous year. During this period, a total of 44 million smartphones were sold, reflecting a muted performance. September recorded the lowest shipments since 2019.
According to a report from the International Data Corporation (IDC), the lack of growth can be attributed to tapered demand and high prices. Despite this, the premium smartphone segment experienced the highest growth in Q3.
Average Selling Price Increases
While overall shipments did not meet expectations, the average selling price (ASP) of smartphones increased. The ASP reached ₹21,000, indicating a 5% quarter-on-quarter increase and a 12% year-on-year increase.
On the other hand, the ASP of 5G smartphones dropped by 9% year-on-year, reaching ₹29,700. This decrease suggests an effort to make 5G smartphones more affordable for consumers.
5G Smartphone Share Increases as Price Declines
The availability of unlimited 5G services and the launch of affordable 5G smartphones have contributed to an increase in demand for 5G devices. In Q3 2023, 5G smartphones accounted for 58% of overall shipments, with 25 million units sold. Additionally, the ASP of 5G smartphones decreased.
Most 5G smartphone launches were in the ₹8,400 to ₹16,700 price range. The share of 5G smartphones in this segment increased from 34% in Q2 to 52% in Q3.
According to Upasana Joshi, Research Manager at IDC India, the surge in affordable 5G smartphone shipments indicates positive market sentiments and the success of vendors’ efforts to make these devices more accessible. During the festive season, there is expected to be high demand for previous generations of premium smartphone models, as they become more affordable through various offers and discounts.
Samsung Continues to Lead the Smartphone Industry
Despite experiencing a decline in market share, Samsung maintained its position as the leading smartphone brand in India. The company’s market share dropped from 18.5% in Q3 2022 to 16.2% in Q3 2023.
Realme and Vivo secured the second and third positions, respectively, with market shares of 15.1% and 13.9%.
Xiaomi Falls to Fourth Position
Xiaomi witnessed a significant 32.4% year-on-year decline, resulting in the company falling to the fourth position in the smartphone industry. Its market share decreased from 17.4% in Q3 2022 to 11.7% in Q3 2023.
OnePlus and Poco Record Impressive Growth
OnePlus and Poco emerged as the top gainers in Q3 2023. OnePlus achieved a growth rate of 50.1%, increasing its market share from 4.2% to 6.2%. Similarly, Poco recorded a growth rate of 50.8%, with its market share rising from 3.8% to 5.7%.
Apple Leads the Super-Premium Segment
The super-premium segment experienced a growth of 43%, with its overall market share increasing from 4% to 6% in Q3. Apple dominated this segment, capturing a 60% market share. The success of its iPhone 13, iPhone 14, and iPhone 14 Plus contributed to Apple’s dominance. Samsung secured the second position in this segment, with a 36% market share, driven by the popularity of its Galaxy S23 series and Galaxy Z Fold 5 and Flip 5 foldables.
Outlook for 2023 Remains Flat
Despite the festive season, the outlook for smartphone makers in 2023 is not very encouraging. Navkendar Singh, AVP of Devices Research at IDC, stated that while the modest start to the festive season, fueled by financing options and affordability initiatives, may bring some positive sales, there may be excess inventory challenges as demand softens in the latter half of the quarter. As a result, the outlook for 2023 indicates either flat growth or a slight decline in the smartphone market.
Sources:
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– Smartphone shipments: Apple gains 34% market share in India as Samsung, Xiaomi decline
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