According to a report by Canalys, Indian smartphone market grew 20 per cent year-on-year (YoY) in the fourth quarter (Q4) of 2023, propelling shipments to reach 38.9 million units.
As per the report, Samsung maintained pole position in Q4 2023 with a market share of 20 per cent and shipments of 7.6 million units. Xiaomi continued its robust performance, claiming second place by shipping 7.2 million units. Further, vivo secured third position with shipments of 7 million units, while realme and OPPO (excluding OnePlus) rounded out the top five by shipping 4.5 million and 3.7 million units, respectively.
The report noted that for 2023, India’s smartphone market did maintain stability with 148.6 million shipments overall, a minor drop of 2 per cent. The market demonstrated resilience, owing to improved consumer confidence in the latter part of the year, and despite vendors facing inventory challenges, minimal inflation improvements and fluctuating demand for most of the year.
Commenting on the report, Sanyam Chaurasia, senior analyst, Canalys, said, “In 2023, growing investment in mainline retail space proved beneficial not only for vendors but also allowed the overall market to stabilise.”
The report added that brands such as Xiaomi and realme saw their highest offline shipment share in Q4. Xiaomi democratised its portfolio, contributing equally to offline and online channels, making its highest offline channel contribution quarter. Its Redmi 12 5G and recently launched Redmi 13C series contributed to its offline share, each surpassing a million shipments. Similarly, realme also shipped devices with equal channel contribution, with the Narzo series driven by ecommerce, while the remaining portfolio continued to dominate offline channels. To further enhance their positions in the premium space, brands should continually focus on bolstering the confidence of their channel partners.
Chaurasia added, “The premium segment witnessed robust growth, thanks to easy financing options, incentive schemes for retailers and rising disposable income. With the celebration of Diwali in November 2023, Apple got the opportunity to push the latest iPhone 15 series during the festive sales, contributing more than 50 per cent to its shipments in Q4. Additionally, discounts on the previous-generation iPhone 14 and iPhone 13 models during online sales resulted in Apple’s record shipments, allowing it to capture 7 per cent market share in India. Similarly, Samsung had set aggressive retail targets for its premium Galaxy S23 series to drive premium segment growth. Along with this, Samsung’s latest Galaxy S23 FE launch in Q4 drove shipments, owing to compelling banking deals.”
He further added, “Vendors are entering 2024’s election year with improved indicators for the consumer market with manageable inflation, a steady interest rate and clear visibility of a stable government to come into power. Canalys expects the Indian smartphone market to grow by mid-single digits in 2024, driven by affordable 5G and the pandemic period replacement cycle. But the biggest challenge for vendors this year will be to manage the rising bill of materials costs.”
