India's smartphone market shipment has reportedly experienced a 1% year-over-year (YoY) growth, with 146 million units shipped in 2023.
A notable surge occurred in the latter half of the year, compensating for the preceding sharp 10% decline in the first half. By the fourth quarter of 2023, sales reached 37 million units, reflecting a robust 26% year-over-year growth attributed to stronger-than-anticipated shipments and the introduction of multiple new models.
According to the International Data Corporation (IDC), despite price adjustments and vendor strategies, strained consumer demand caused excess inventory across various distribution channels. The average selling price (ASP) of smartphones has set a new peak (USD 255), marking the third consecutive year of double-digit increases. This trend has also impeded the recovery of the smartphone market.
The high ASP was driven by the growing proportion of premium smartphones (USD 600+) and the high adoption of 5G shipments, accounting for 55% share.
“Most brands chose to reduce prices and offer additional channel margins in the last quarter to manage the inventory levels from post-festive cyclic dip. This will give a lukewarm start to 2024 with cautious stocking by the channels,” said Upasana Joshi, Research Manager, Client Devices, IDC India.
During 2023, shipments to online channels witnessed a 6% decline, leading to a reduction in market share from 53% in 2022 to 49%. In contrast, offline channels experienced an 8% YoY growth. This growth was attributed to vendors bolstering their retail presence with appealing high-end products and expanding into smaller urban areas.
Despite economic challenges, India’s smartphone market is projected to experience minimal to modest yearly growth in 2024, mostly due to individuals upgrading their devices in the USD 200 to USD 400 price range.
