Indian Smartphone Market Sees 10% H1 2023 Sales Drop, According to IDC
- ByStartupStory | August 4, 2023
Despite a 10% year-on-year decline in the first half of 2023, the Indian smartphone market showed a more positive performance in the second quarter with 34 million shipments. This was driven by inventory clearance efforts ahead of the festive season, according to a report from IDC India. The report highlighted a sequential drop of 8% in average selling prices (ASPs) to $241 in Q2, though still 13% higher than a year ago.
“Consumers are opting for premium offerings, driven by easy and affordable financing options. IDC expects this growth momentum to continue in the upcoming months of 2023,” said Upasana Joshi, Research Manager, Client Devices, IDC India.
However, the sub-$200 segment’s share fell by 11% year-on-year, contributing 65% of shipments compared to 70% a year ago. The premium segment grew the fastest, with 75% year-on-year growth in Q2, capturing 6% of the market. The mid-range segment remained flat with a 22% share, while the high-end segment grew by 34% to make up 5% of the market.
IDC attributed the growth of the premium and high-end segments to 17 million 5G smartphone shipments, led by Samsung, Vivo, and OnePlus.
Poco emerged as the fastest-growing smartphone brand in Q2 with 76.5% year-on-year growth, driven by its affordable C-series smartphones. Meanwhile, OnePlus grew by 61% despite a 14% year-on-year decline in ASP to $346, and Apple saw significant growth with the highest ASP of $929, registering a massive 61% year-on-year growth.
Vivo overtook Samsung to become the top smartphone brand in Q2 with a 16% market share, while Samsung’s share declined 6.2% year-on-year to 15.7%. Xiaomi fell to the fifth spot, with shipments dropping 39.4% year-on-year, ending up with an 11% market share, tied with Oppo. Realme secured the third spot despite a 29.8% decline, capturing a 12.6% market share.
Looking ahead, Navkendar Singh, Associate Vice President at IDC India, stated that brands will attempt to stimulate consumer demand in the festive season with affordable 5G launches, pre-booking offers, and loyalty programs, although strong double-digit growth is required in the coming months for annual growth in 2023, which currently seems uncertain.
Follow Startup Story
Related Posts
