The demand for 5G smartphones in India has increased dramatically in recent years, with a number of new products expected to be launched in 2023.Interestingly, this country 79 million 5G smartphones shipped in 2023accounting for a whopping 54.1% of the total annual shipment volume.
In the broader context of the Indian smartphone market, overall smartphone shipments will reach 146 million units in 2023, registering a nominal year-on-year growth of 1%, according to the latest data from International Data Corporation (IDC). did. In particular, the second half of 2023 showed impressive momentum, with smartphone shipments increasing by 11% year-on-year. This strong performance in the second half of the year effectively compensated for the significant 10% year-on-year decline recorded in the first half.
Specifically, the holiday quarter accounted for over 25% of India’s total smartphone shipments in 2023, totaling 37 million units. Shipments in the fourth quarter of 2023 increased by an astonishing 26% compared to the previous year.
Demand for 5G smartphones surges in India
India is rapidly moving towards premiumization trend in the smartphone space. Average selling price (ASP) of smartphones increases by 14% year-on-year to reach a record of USD 255 in 2023. In particular, ASP has recorded double-digit growth for three consecutive years, which is a constraint on the overall recovery of the smartphone market.
The rise in smartphone ASP in India is primarily driven by the growing demand for premium smartphones priced above USD 600; The premium segment’s share increased from just 6% in 2022 to 10% in 2023. Additionally, the rapid adoption of 5G smartphones played a pivotal role in India, accounting for a record 54% share of the total market.
However, 5G smartphones are no longer a luxury item that is perceived as out of reach. Notable changes include: The average selling price of a 5G smartphone in India fell 5% year-on-year to USD 374 in 2023. Within the 5G category, mass budget (US$100
Apple iPhone 13 and iPhone 14, Samsung Galaxy A14, Vivo T2x, and Xiaomi Redmi12 were the most shipped 5G smartphones in India in 2023.
In India’s premium smartphone category, nearly 1 million foldable smartphones were shipped in 2023, with an ASP of $1,236, down 4% YoY. Samsung maintained its dominant position in the foldable smartphone market, capturing a staggering 73% market share in 2023.
Meanwhile, India’s feature phone sector made a comeback in 2023 after four consecutive years of declining shipments. The country shipped 61 million feature phones last year, an 8% year-on-year growth.
“Most brands opted to reduce prices and provide additional channel margin in the last quarter to manage inventory levels due to the cyclical post-Christmas drop. Be cautious and expect a lukewarm start to 2024,” said Upasana Joshi, Research Manager, Client Devices, IDC India.
Key highlights: India smartphone shipments in 2023
- Smartphone shipments through online channels in India declined by 6% year-on-year in 2023, with the share dropping to 49% from 53% in 2022.
- India’s offline channel smartphone shipments grew 8% YoY in 2023. This growth can be attributed to vendors strengthening their retail presence with lucrative premium products and expanding their reach into smaller towns and cities.
- India’s entry-level smartphone segment (less than USD 100) grew by 12% YoY in 2023 and accounted for a significant share of 20% of the total smartphone market. Xiaomi maintained its leading position in this segment, closely followed by POCO and Samsung as the second and third major brands respectively.
- The share of the mass-market budget smartphone segment (US$100 < US$200) declined from 51% in 2022 to 44% in 2023. This was primarily due to a 12% year-over-year decline in unit shipments during this period. vivo, Realme, and Samsung together accounted for 53% of total shipments within this segment.
- The entry premium segment (US$ 200
- Shipments in the mid-premium smartphone segment (US$400 < US$600) grew by 27% YoY in 2023. This segment accounted for 5% share of the total Indian smartphone market. OnePlus takes the lead with his 35% share, followed by Samsung and Vivo.
- Shipments in the premium segment (US$600 < US$800) in India grew 23% YoY in 2023, led by iPhone 13, Galaxy S23/S23 FE, and OnePlus 11. This segment secured a 3% share of the total smartphone market.
- The super premium segment (above USD 800) recorded the highest growth in shipments in 2023, at 86% year-on-year. This rapid growth has increased its market share, reaching 7% from 4% in 2022. The super premium segment was dominated by Apple with an overwhelming share of 68%, while Samsung secured his second place with a remarkable share of 30%.
The Indian smartphone market has seen a decline or stagnation in shipments following the coronavirus pandemic. Looking ahead to 2024, the market is expected to be flat to low single-digit annual growth. This growth trajectory is expected to be primarily driven by upgraders in the (US$200 < US$400) segment and supported by financing schemes, extended warranties, and upgrade programs. While Apple is capitalizing on the premiumization trend, the Android market is buzzing with diverse players introducing competitive products such as his 5G and foldable devices to woo Indian consumers. .
