India’s smartphone shipments dipped to about 31 million units in the January-March quarter, thereby recording the steepest fall of 19 per cent in the first quarter on a year-over-year basis.
Phones priced below Rs 30,000 apiece recorded a sharp decline while shipment in the premium and ultra premium category registered 60-66 per cent increase.
Explained
”This was the highest ever Q1 decline seen by India’s smartphone market, besides being the third consecutive quarterly decline.
Sluggish demand, high inventory build-up carried over from 2022, growing consumer preference for refurbished phones and pessimistic channel view of the market contributed to this decline,” Counterpoint’s market monitor service report said.
Samsung and 5G
5G smartphones have taken up a record of 43 per cent of the total smartphone shipments.
With a 20 per cent share, Samsung led the Indian smartphone market for the second consecutive quarter.
It was also the top 5G brand.
Its new 5G-capable A series performed well in the offline market, contributing 50 per cent of the shipments.
This was driven by the successful launch of the S23 series and financing options.
Top Chinese brands
Vivo maintained its second position during the reported quarter with a 17 per cent market share despite a 3 per cent YoY decline in shipment.
Xiaomi experienced a 44 per cent YoY drop from first quarter 2022, falling to the third spot, with a 16 per cent share.
OnePlus was the fastest growing brand with 72 per cent YoY growth in the March 2023 quarter.
Apple
Apple grew 50 per cent YoY and acquired a 6 per cent share in March 2023 quarter.
The brand maintained its lead in the overall premium segment (Rs 30,000) as well as in the ultra-premium segment (above Rs 45,000) with 36 per cent and 62 per cent shares, respectively.
iPhones enjoyed sustained popularity with Apple’s new financing scheme with HDB Financial Services and promotions on the latest iPhone 14 series in offline channels.
“Premiumization”
Counterpoint senior research analyst Prachir Singh said, “Premiumization trend is becoming stronger with each passing quarter.
The premium segment’s share almost doubled in the first quarter of 2023 compared to the first quarter of 2022″
”The premium segment’s growth is reducing the mid-tier share as consumers are upgrading to higher-priced smartphones.”
Categories of shipments
Phone prices in the range of Rs 20,000-30,000 recorded a 33 per cent fall in shipment, Rs 10,000-20,000 segment registered a 34 per cent decline and phones priced below Rs 10,000 recorded a 9 per cent decline in shipment on YoY basis.
Lava
Made-in-India brand Lava did well with its refreshed portfolio in the sub-Rs 10,000 segment.
It was also the third fastest-growing brand in Q1 2023 with 29 per cent YoY growth
It offers the cheapest 5G smartphone (Blaze 5G).
