According to a report by Counterpoint Research, India’s smartphone shipments remained flat in 2023 at 152 million units. As per the report, the first half of the year was challenging due to ongoing macroeconomic turbulence leading to low demand and an inventory build-up. The market started recovering in the second half of the year supported by 5G upgrades and better-than-expected festive sales.
Commenting on the report, Shilpi Jain, senior research analyst, Counterpoint Research, said, “Driven by the premium segment’s growth and 5G upgrades, India’s smartphone market grew 25 per cent year on year (YoY) in Q4 2023 after declining for a year. The elongated festive season further aided this growth, as the availability of steep discounts, easy financing schemes and lucrative promotions boosted demand. For many original equipment manufacturers (OEMs), the key focus during the year was on taking 5G to the lower segment driven by a shift in consumer preferences. 5G smartphone shipment share crossed 52 per cent in 2023, growing 66 per cent YoY. The last quarter (October-December) exited the market with healthy inventory levels compared to last year, setting the right tone for growth for next year. We believe the market will grow by 5 per cent YoY next year driven by premiumisation, diffusion of 5G in lower price bands and better macroeconomic conditions.”
Meanwhile, Shubham Singh, research analyst, Counterpoint Research, said, “Samsung led the market in 2023 with an 18 per cent share driven by a strong performance of the A series, aggressive marketing in offline, and a focussed approach in the premium segment. vivo ranked second with a 17 per cent share and led the affordable premium segment in 2023 driven by colour, material, finish (CMF)-focused V29 series in offline and T series in online. Xiaomi slipped to the third spot in 2023 but captured the top spot in Q4 2023 driven by its strategy to launch 5G phones in the affordable segment, offline expansion and a leaner portfolio. The premium segment (greater than Rs 30,000) witnessed a 64 per cent YoY growth in 2023 driven by easy financing schemes, which resulted in consumers jumping price bands to purchase higher-priced smartphones. One out of every three smartphones was purchased through financing in 2023. Apple’s focus on India is also aiding the trend, with the brand surpassing the 10-million-unit mark in shipments and capturing the top position in revenue in a calendar year for the first time, propelled by robust demand for both its latest and older iPhones. The opening of own retail stores and increasing focus on large-format retail (LFR) through regular promotions contributed to increased offline shipments. Besides, higher trade-in values presented an appealing proposition for consumers to transition to iOS.”
The report finds that offline channels witnessed growth throughout the year to reach 55 per cent share in 2023 driven by consumers’ preference for the look and feel of the device. Offline channels will continue to grow in 2024 as well due to the ongoing trend of premiumisation, increasing trade-ins and availability of more financing schemes.
The report forecasts that there will be a huge OEM focus on CMF across different price points, encouraging consumers to opt for the same. Counterpoint Research expects a growing trend of audio-video enhancements in smartphones, powered by features like Dolby Atmos, Dolby Vision and Dolby Vision recording. Consumers can also share their video content on short-video platforms such as Moj in Dolby Vision. Also, the incorporation of generative artificial intelligence in smartphones is expected to contribute to the development of more personalized content and smarter digital assistants. Foldables will also become more popular in the premium segment as more OEMs are coming up with foldable devices. Foldable shipments are predicted to cross the 1 million milestone in 2024.
