According to a report by the International Data Corporation (IDC), the smartphone market in India experienced minimal growth in 2023, with shipments increasing by just 1%. Despite this slow growth, Samsung emerged as the market leader with the largest market share, while Poco, OnePlus, and Apple reported significant increases in shipments.
The IDC report indicates that consumer demand remained tight in 2023, leading to excessive inventory levels. However, signs of improvement appeared towards the end of the year, as the fourth quarter of 2023 saw a 26% growth compared to the previous year, with 37 million smartphones shipped. This was partially due to the introduction of new smartphone models in the market.
According to Upasana Joshi, Research Manager for Client Devices at IDC India, most brands decided to lower prices and offer additional margins to channels in the last quarter to manage inventory levels after the post-holiday decline. This will provide a smooth start in early 2024, thanks to cautious stocking by distribution channels.
In 2023, there was also an increase in the average selling price (ASP) of smartphones. The average selling price of smartphones increased by 14% compared to the previous year, marking the third consecutive quarter of double-digit ASP growth.
The increased ASP is attributed to a larger share of premium smartphones, which rose from 6% in 2022 to 10% in 2023. Additionally, the share of 5G smartphones in the overall shipments increased to 55%.
Samsung once again dominated the smartphone market, maintaining the largest market share despite a decline compared to 2022. Samsung accounted for 17% of smartphone shipments in 2023, compared to 18.1% in 2022.
Xiaomi suffered the biggest market share decline in 2023, dropping from the second position to the fourth after a long-standing dominance in the Indian smartphone market. Xiaomi’s market share decreased from 17.8% in 2022 to 12.4% in 2023, resulting in a 29.6% decline in shipments. The brand still leads in the segment of affordable devices priced below $100.
Poco recorded the highest annual growth, with its market share increasing by 54.2%, from 3.2% in 2022 to 4.9% in 2023. Apple reported a change of 38.6%, increasing its market share from 4.6% in 2022 to 6.4% in 2023. The company dominates the super-premium segment, encompassing smartphones priced above $800, with a 68% share. Samsung ranks second in this segment with a 30% share, meaning both companies account for over 98% of this segment.
According to Navkendar Singh, Vice President of Research for Client Devices at IDC India, “the path to smartphone revival in 2024 looks tense and requires greater efforts, especially in the low-priced device segment, to drive organic growth.”
FAQ Section on the key topics and information presented in the article:
1. What were the overall smartphone shipments in the Indian market in 2023?
In 2023, the Indian smartphone market witnessed a minimal growth in shipments, with just a 1% increase compared to the previous year. A total of 146 million smartphones were shipped.
2. Which company was the market leader in the Indian smartphone market in 2023?
Samsung emerged as the market leader in the Indian smartphone market in 2023, holding the largest market share in shipments.
3. Which companies reported significant growth in shipments in 2023?
Poco, OnePlus, and Apple reported significant growth in shipments in 2023.
4. What were the reasons for the decline in consumer demand in the Indian market in 2023?
The IDC report indicates excessive inventory levels and tight consumer demand as the reasons for the decline in consumer demand in the Indian market in 2023.
5. What were the reasons for the growth in the fourth quarter of 2023?
The introduction of new smartphone models contributed to the growth in the fourth quarter of 2023.
6. Why did the average selling price of smartphones increase in 2023?
The average selling price of smartphones increased by 14% in 2023, primarily due to a higher share of premium smartphones and the rise in the proportion of 5G smartphones.
7. Which company maintained the largest market share in the smartphone market in 2023 despite the decline?
Samsung continued to hold the largest market share in the smartphone market in 2023, with a 17% share of shipments.
8. Which companies reported the highest annual growth in 2023?
Poco reported the highest annual growth with a 54.2% increase in market share, while Apple increased its market share by 38.6%.
9. Which company dominates the super-premium segment in India?
Apple dominates the super-premium segment in India, encompassing smartphones priced above $800, with a 68% share.
10. What is the outlook for the smartphone market in India in 2024?
The outlook for the smartphone market in India in 2024 appears tense and requires greater efforts, especially in the low-priced device segment, to drive organic growth.
Key term definitions or jargon used in the article:
1. Shipments – the number of smartphones shipped to the market for sale.
2. International Data Corporation (IDC) – a research firm specializing in market analysis for the technology industry.
3. ASP (Average Selling Price) – the average price at which smartphones are sold.
4. Premium Segment – a high-quality market segment encompassing more expensive and significant products.
5. Super Premium Segment – a market segment encompassing the most expensive and exclusive products.
Suggested related links to the main domain (not subpages):
– https://www.idc.com – IDC’s official website for technology market research.
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The source of the article is from the blog jomfruland.net