 "Indian smartphone shipments decline 16% YoY to lowest Q1 in 4 yrs: IDC")
India’s smartphone shipments fell 16 per cent on-year to 31 million in the first quarter (Q1) of calendar year 2023 (CY23) to reach the lowest Q1 shipments in four years, according to a Worldwide Quarterly Mobile Phone Tracker preliminary data by the International Data Corporation (IDC).
Consumer demand remained sluggish amid uncertain macroeconomic conditions, and inventory levels stayed elevated because of high stocking in the second half (H2) of calendar year 2022 (CY22), the report said.
The average selling price reached an all-time high of $265, and the share of higher-priced smartphones (over $600) increased to 11 per cent, compared with 4 per cent a year ago.
The share of 5G smartphones increased to 45 per cent, up from 31 per cent in Q1CY22, led by Samsung, which accounted for more than a quarter of the 5G smartphone shipments.
“5G smartphones continue to increase penetration in the low-end price segment and we should expect a strong 5G play in the $150<$300 segment in H2CY23 as high-end 4G models vacate the space,” says Upasana Joshi, research manager, client devices, IDC India.
Shipments to online channels dropped significantly, as offline channels were backed by model launches and attractive channel promotions in Q1CY23.
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Samsung climbed to the top slot after more than five years, supported by the launch of affordable 5G smartphones and the Galaxy S23 series, followed by Vivo which continued to build on its omnichannel portfolio and Oppo (including OnePlus), while Xiaomi slipped to fourth slot in Q1CY23.
India’s smartphone market is expected to see flat growth in CY23.
“The second half of the year can bring some growth if brands bring attractive festival offerings across channels to drive affordability,” says Navkendar Singh, associate vice-president, devices research, IDC.
This, he says, can be facilitated by consumer optimism on the back of the Cricket World Cup (hosted by India), a few key state elections, followed by general elections in 2024.