India’s smartphone market has finally revived in Q4 2023 after five consecutive quarters of either declining or stagnant yearly growth in shipments. The noteworthy 25% YoY growth in smartphone shipments during the fourth quarter was primarily driven by the flourishing shipments in the premium segment, the widespread adoption of 5G devices, and better-than-expected sales during the festive season.
Despite the remarkable turnaround in the final quarter, the broader landscape for the entire year of 2023 reflects the challenges faced by original equipment manufacturers (OEMs) in the world’s second-largest smartphone market. The smartphone shipments in India remained flat at 152 million units in 2023, according to Counterpoint Research.
The trend of declining smartphone shipments in India began in Q3 2022, registering an 11% YoY fall. The situation further deteriorated in Q1 2023 when shipments plunged 19% YoY, mainly due to the macroeconomic turbulence resulting in low demand and inventory build-up. However, in Q2 2023, the country’s smartphone market exhibited a notable improvement as shipment declined a modest 3% YoY. This positive momentum was followed by flat growth in Q3 2023, signalling hope for potential recovery and growth in the holiday quarter.
Smartphone Shipments in India 2023
- Samsung emerged as India’s largest smartphone brand, with an 18% market share in 2023. Despite a slight dip in market share compared to 2022, the Korean giant’s performance was buoyed by robust demand for its A-series, an assertive offline marketing strategy, and a targeted focus on the premium segment.
- In Q4 2023, Samsung slipped to third position with just a 16.8% share in India’s smartphone market after dominating the market for four consecutive quarters.
- Vivo’s market share increased to 17% in 2023 from 16% in 2022, making it India’s second-largest smartphone brand. Chinese giant’s notable achievement was evident in its leadership of the affordable premium segment during the year. This success was driven by the offline popularity of the CMF (Colour, Material, Finish)-focused V29 series and the online dominance of the T series.
- Xiaomi slipped to the third spot in 2023, registering a 16.5% market share, down from 20% in 2022, where it was leading. However, the Chinese brand’s strong performance in Q4 2023 helped it reclaim the top spot, commanding an 18.3% shipment share. Xiaomi’s resurgence in the final quarter was powered by a strategic approach, including introducing 5G phones in the affordable segment, expanding offline presence, and a more streamlined product portfolio.
- Realme and Oppo remained India’s 4th and 5th largest smartphone brands, with 12% and 10.5% market share, respectively, in 2023.
- OnePlus smartphone shipments in India grew an impressive 33% YoY in 2023, driven by offline expansion and an enhanced product portfolio within the affordable premium segment (INR 30,000-INR 45,000, ~ $360-$540).
- Transsion’s performance in the Indian smartphone market is commendable, with a noteworthy 31% YoY growth in smartphone shipments during 2023. This success is primarily attributed to the brand’s effective hybrid channel strategy, commitment to integrating premium features into the affordable segment, and a robust market presence in Tier 2 and 3 cities.
- In 2023, several other OEMs demonstrated notable shipment growth, including Google with an impressive 111% YoY increase, Lava with a substantial 36% YoY growth, and Motorola with a 13% YoY rise.
India’s Ascent into the Premium Segment
India’s premium smartphone segment (>INR 30,000, ~ $360) experienced an impressive 64% growth in shipments in 2023. Surprisingly, one out of every three smartphones was purchased through financing, highlighting the significant influence of accessible financing options in encouraging the purchase of premium devices.
Apple has witnessed a huge demand for iPhones among Indian consumers for the last few years, thanks to discounts and coupons offered by e-commerce platforms and EMI options. In a noteworthy achievement, iPhone shipments in India surpassed the 10-million-unit mark for the first time in 2023, concurrently securing the top position in revenue. The strategic initiatives, including establishing proprietary retail stores and an intensified focus on Large-Format Retail (LFR) through consistent promotions, played pivotal roles in augmenting offline shipments. Additionally, the provision of higher trade-in values presented an appealing proposition for consumers, encouraging them to make the transition to the iOS ecosystem.
Looking Ahead to 2024
The year 2023 proved challenging not only for India but also globally in the context of smartphone shipments. However, the fourth quarter brought a positive turn for OEMs as the demand for smartphones surged during the holiday season. Notably, throughout 2023, many OEMs strategically redirected their focus towards prioritizing the expansion of 5G technology to the lower market segment in India, aligning with consumers’ evolving preferences. The results were outstanding; India’s 5G smartphone shipment share exceeded 52% in 2023, growing 66% YoY.
As India’s top three smartphone brands, Samsung, Vivo, and Xiaomi, consistently shuffle positions almost every quarter, it would be interesting to see who will emerge as the ultimate winner in 2024.
