Edited By: Shaurya Sharma
Last Updated: February 11, 2023, 12:23 IST
In the premium market segment of $500 and above, Apple has held onto its lead with 60% of the market share.
According to IDC, Indians are buying fewer smartphones, as the shipment of smartphones in India experienced a sharp decline of 27% in the Q4 of 2022, reaching 29.6 million units compared to 40.6 million in the same period of the previous year.
With smartphones’ increasing similarity in appearance, reaching the proverbial ‘saturation point’ in terms of performance, and rising Average Selling Price (ASP), the demand for them has declined in India.
According to IDC, the shipment of smartphones in India experienced a sharp decline of 27% in the Q4 2022, reaching 29.6 million units compared to 40.6 million in the same period of the previous year, with the drop being attributed to the growing inflationary pressures.
According to IDC, the smartphone shipment market faced challenges despite various promotions and deals. High inventory levels following the Diwali festival limited new shipments. In the sub-$300 (approximately Rs 25,000) price range, there was a decrease of 15% in shipments.
However, the mid-premium and premium segments ranging from $300-500 and above $500 (Rs 41,000), respectively, saw an increase of 20% and 55% during the year 2022.
Additionally, the entry-level smartphone market, comprising phones priced below Rs 12,500, has seen a decline from 54% to 46% in comparison to the previous year.
In the premium market segment of $500 and above, Apple has held onto its lead with 60% of the market share. The iPhone 13 was the third most shipped device in 2022, while Samsung had a 21% market share.
Xiaomi shipped a total of 30.3 million smartphones, with a market share of 21%—a 4.1% decline from 2021, but remains the market leader in India.
Overall, representing a decline of 12% in the Indian market, the annual smartphone shipments stood at 201 million.
“Feature phone shipments stood at 57 million, a drop of 18% YoY. Samsung, Xiaomi and Transsion were the leading companies in the total mobile phone market,” IDC’s report said.
“We should expect a rather difficult and elongated recovery for the smartphone market, as worries around rising prices and excess inventories will remain a concern through at least the first half of 2023. Vendors and channel partners need to rethink their plans for their entry-level portfolios, driving 5G device affordability with attractive trade-in programs and financing schemes, ” said Navkendar Singh, Associate Vice President, Devices Research, IDC.
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