India’s smartphone market sees flat growth in September quarter

New Delhi: India’s smartphone market posted almost flat year-on-year growth during the second quarter of 2023-24, with shipments of 44 million units. Besides, shipments in September was the lowest since 2019, with falling demand and high prices restricting growth.

July and August witnessed single-digit growth with early festive stocking failing to boost sales, remaining stagnant during the first half of 2023.

“As demand softens in the latter half of the quarter (post- Diwali) brands may face excess inventory challenges. Hence, the outlook for 2023 is flat or low a single digit decline. Next year, we will see affordable 5G and foldable phones at the mid to premium end, but inflationary stress and longer refresh cycles may limit annual market growth in 2024,” said Navkendar Singh, assistant vice- president, devices research, International Data Corp.

Samsung led India’s smartphone sales with a 18.5% market share, followed by Realme, Vivo, Xiaomi and Oppo.

Micro financing options on budget devices such as no-cost EMIs for 24 to 30 months, as well as affordability initiatives by major brands led to modest start to the festive season.

Despite the gloomy outlook, there were several upsides for brands. The average selling price (ASP) hit a high of $253 or 21,000, with 5% sequential and 12% annual growth in the quarter ended 30 September, leading to better revenues for brands.

Vendors focused on affordable 5G devices and discounts across channels, driving down ASP for 5G handsets to about 30,000. Lower prices for 5G phones will lead to higher sales compared to 4G devices. Share of 5G phones in under 17,000 segment, or budget segment, rose to 52% from 34% during the April-June period.

“5G smartphone shipments reached record 58% share with 25 million units in the quarter. 5G ASP dropped to $357 in Q3 23, a decline of 9% y-o-y. Samsung’s Galaxy A14, Apple’s iPhone 13, and Xiaomi’s Redmi 12 were the highest shipped 5G models during the quarter,” the research firm said.

Premium segment, priced at 49,000 to 65,000, with a 3% share, registered the highest growth of 52%, led by iPhone 13, Galaxy S23/S23 FE and the newly launched Moto Razr 40. The super-premium segment, upwards of 65,000, posted 43% growth, with 6% share, up from 4% in Q3 2023. Apple led with 60% share with shipment of iPhone13,14,14-Plus. Samsung‘s share rose from 24% to 36%, led by Galaxy Z Fold5, Flip5, Galaxy S23+, S23 Ultra,” IDC said.

Foldable phone shipments hit a record half million units in a single quarter, Samsung leading with 66% share. New launches by Motorola at lower price points brought the ASP of foldable phones down to US$1198 or about 1 lakh, from US$1319 or 1.09 lakh a year ago.

Milestone Alert!Livemint tops charts as the fastest growing news website in the world 🌏 Click here to know more.

Catch all the Industry News, Banking News and Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.


Updated: 07 Nov 2023, 11:33 PM IST

Denial of responsibility! is an automatic aggregator around the global media. All the content are available free on Internet. We have just arranged it in one platform for educational purpose only. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials on our website, please contact us by email – at The content will be deleted within 24 hours.

Read original article here

Leave A Reply