Premium smartphones sales in India

India’s smartphone shipments declined 3% YoY in Q2 2023 (April-June). Though this decline was the fourth consecutive quarterly decline, its magnitude reduced significantly, from 19% in Q1 to 3% in Q2. The base effect, pent-up demand and improving macroeconomic conditions helped the market close at less than the expected decline. However, the premium smartphone segment presented a different picture, growing 112% Year-on-Year in Q2 to contribute a record 17% to the overall shipments. As per the report of Counterpoint research.

In Q2 2023, OEMs saw improvement in the inventory and demand situation ahead of the coming festive season. Aggressive measures were implemented by OEMs as well as channels during the quarter to clear existing inventory through multiple sales and promotions. At the consumers’ end, falling inflation and better growth prospects facilitated demand recovery.

In Q2 2023, 5G smartphone shipments in India crossed the 100-million cumulative mark as 5G upgrades picked up pace driven by the expansion of 5G networks and availability of affordable devices. 5G smartphone shipments grew 59% Year-on-Year during the quarter.

5G upgrades also played a major role as OEMs kept launching 5G devices in the Rs 10,000-Rs 15,000 segment for a wider reach. With this the brands will be coming up with interesting launches and offers to lure consumers during the festive season and 5G will be a big growth driver here.

Samsung remained at the top position for the third consecutive quarter with an 18% market share. The brand also surpassed Apple to regain its top position in the premium smartphone segment after one year with a 34% share. Aggressive offers on the Z Flip3 and S21 FE, Samsung Finance+ and high demand for the latest premium A-series and F-series devices drove this growth.

However, Apple continued to lead the ultra-premium segment with a 59% share. India is now among Apple’s top-five markets.

Vivo maintained its second spot in the overall market and was the only brand among the top five to experience Year-on-Year growth. Strong offline presence, growth of sub-brand iQOO in online, and multiple launches across price tiers facilitated this growth. OPPO has been consistently expanding its shipments in the higher-tier segments, with a particular focus on the upper mid-tier range (Rs 20,000-Rs 30,000), showcasing its strategy to cater to diverse consumer needs. OPPO emerged as the top brand in this segment with a 21% market share. OnePlus was the fastest growing brand in India’s smartphone market in Q2 with 68% Year-on-Year growth.

Samsung and Apple are also increasing their offline presence to cater to diverse consumer preferences. This shift reflects a more comprehensive approach, leveraging both online and offline channels to create a seamless and personalized customer experience.

S Mohini Ratna, Editor, VARINDIA