Tuesday, June 25, 2024
Smartphone news

India’s smartphone market registered nominal growth while average selling price rose 14% in 2023: Report

India’s smartphone market registered nominal growth of 1% YoY (Year-over-Year) in 2023. Overall, 146 million smartphones were shipped in the country with the second half of the year registering growth of 11% YoY, compensating for the sharp, 10%, decline in the first half.

In Q4 2023, shipment reached 37 million units, registering stronger than expected demand due to several new launches, IDC said in a blog post.

Meanwhile, consumer demand remained stressed, leading to excess inventory levels across channels despite price corrections and schemes by the vendors. The year also witnessed an increase in the Average Selling Price of devices, rising 14% YoY in 2023. Marking the third consecutive year of double-digit ASP growth restricting recovery in the market.

According to IDC, the high ASP can be attributed to increasing share of the premium-segment from 6% to 10% in 2023, along with a rapid uptake in 5G shipments to a record 55%.

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Shipments to online channels also dropped by 6% settling at 49% of the overall market in 2023, down from 53% in 2022. Meanwhile offline shipments grew by 8%YoY as vendors strengthened their retail presence with lucrative premium offerings as well as expansion into smaller towns and cities.

The share of MediaTek-based smartphones increased to 50%, growing 6% YoY, while Qualcomm’s share dropped to 25%, a shipment decline of 6% YoY.

Samsung’s Galaxy A14 was the highest shipped device in 2023

In terms of brand performance, Apple had a stellar year, shipping nine million units, despite having the highest ASP. The iPhone 13/14 were also among the top five shipped models annually.

Samsung’s A14, was the most shipped device of 2023. And overall the brand remained in the leadership position, with a record high ASP, although with a 5% shipment decline YoY.

Vivo (excluding iQOO) climbed to the second slot as shipments and APSs both grew by 8% and 9% respectively. Becoming the only brand among the top five brands to register growth.

OnePlus continued to lead the mid-premium segment making up almost 40% of the shipments in the segment.

“The road to recovery for smartphones in 2024 looks strained and elongated, as worries around income, inflationary stress, price increases, and inventories remain. 2023 was all about affordable 5G devices, timely price corrections, and offline channel expansion by brands, whereas 2024 and beyond requires greater efforts, especially at entry-level price points, to fuel organic growth,” Navkendar Singh, AVP, Client Devices Research, IDC India said.

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