According to a report by Counterpoint Research, India’s smartphone market shipments declined 11 per cent year-on-year (YoY) in the third quarter (Q3) of the calendar year 2022, a first-ever this period, due to a higher base in 2021 and falling demand in the high-volume budget segment.
As per the report, smartphone brands in India shipped 45 million units in Q3 2022 with demand recovering in August 2022 and peaking in the last week of September 2022 during the festive season sales. The contribution of the sub-Rs 10,000 segment declined 4 per cent YoY to 27 per cent of total shipments. Feature phones also registered a decline of 24 per cent YoY due to adverse macroeconomic conditions continuing to impact the users. Demand was high, especially in the mid-tier and premium segments. High leftover inventory at the end of Q2 2022 combined with modest demand in the entry-tier and budget segments also resulted in less-than-expected shipments in Q3.
The report reveals that Xiaomi continued to be the market leader in Q3 2022, though its shipments declined 19 per cent YoY settling at a 21 per cent market share. The company led the 5G smartphone segment under Rs 20,000 during the quarter. Meanwhile, Samsung held the second spot with 19 per cent market share and was the only brand in the top five to register annual growth, driven by aggressive online channel stock replenishment during the festive season. The company led the overall mobile phone market (including feature phones) with an 18 per cent market share and remained the top-selling 5G smartphone brand in India. Further, Vivo, Realme and Oppo held the last three spots in the top five respectively, with Vivo and Oppo posting a decline in shipments during the festive quarter. Vivo’s shipments declined 15 per cent YoY during the period while Oppo showed a 7 per cent YoY decline. Apple reached its highest-ever market share of 5 per cent during the reported quarter, with iPhones leading the premium segment with a 40 per cent share driven by a strong channel push ahead of the festive season. iPhone 13 was the top-selling smartphone model in Q3 2022.
As per the report, 5G smartphone shipments registered a 31 per cent YoY growth after the 5G network rollout, with consumers keen on purchasing 5G smartphones driving up demand. The segment contributed to 32 per cent of the total shipments, with the premium segment (above Rs 30,000) leading with a 12 per cent share in the reported quarter.