India's Premium Smartphone Segment Saw Strong Growth in 2023: IDC

India's smartphone market shipped 146 million units in 2023, a nominal 1% growth over 2022, according to the latest International Data Corporation (IDC) research.

Navkendar Singh, AVP, Client Devices Research, IDC India said, “The road to recovery for smartphones in 2024 looks strained and elongated, as worries around income, inflationary stress, price increases, and inventories remain. 2023 was all about affordable 5G devices, timely price corrections, and offline channel expansion by brands, whereas 2024 and beyond requires greater efforts, especially at entry-level price points, to fuel organic growth".

“IDC estimates a flat to low single digit annual growth in 2024, primarily led by upgraders in (US$200<US$400) segment, backed by financing schemes, extended warranties and upgrade programs,” Singh added.

While the first half of 2023 saw a 10% decline, shipments picked up in the second half, especially in Q4, which grew 26% year-over-year to 37 million units. It was aided by solid shipments in late 2023 with several new model launches.

Despite the shipment growth, consumer demand remained stressed due to high inventory levels and inflationary pressures. To boost sales, vendors introduced discounts and promotional schemes. The average selling price (ASP) of smartphones in India hit a record high of USD 255 in 2023, a 14% increase over the previous year.

The share of premium smartphones (priced above USD 600) reached 10% in 2023, doubling from 5% in 2022. The rapid uptake of 5G devices, accounting for 55% of shipments, also contributed to the increasing ASP.

According to IDC's analysis, the entry-level segment (under USD 100) grew 12% with Xiaomi leading. The mid-range segment (USD 100-200) saw a 12% decline but remained the biggest at 44% share where brands like Vivo, Realme and Samsung dominated the space.

The premium segment (above USD 600) registered 86% growth, led by Apple's iPhone 14 series, which accounted for 54% of the share. Meanwhile, Samsung Galaxy S23 series held a 30% share in premium smartphones.

Among brands, Apple shipped 9 million iPhones to register a record-high ASP of USD 940 while Samsung held onto its leadership despite a 5% shipment decline. Vivo climbed to second place as shipments and ASP grew by 8% and 9%, respectively.

In 2023, 5G smartphones accounted for 79 million units, with mass-market brands launching more affordable 5G options. MediaTek increased its market share to 50% while Qualcomm slipped to 25% share. Feature phones also made a comeback in 2023, with shipments growing 8% to 61 million units, boosted by Reliance Jio's new 4G Jio Phone.