Samsung Takes Lead As India's Smartphone Market Holds Steady in Q3 2023

India's smartphone market remained flat year-over-year, shipping 44 million units in the third quarter of 2023, according to the latest data from the International Data Corporation (IDC). While July and August saw single-digit growth driven by early festive season stocking by channels, September registered the lowest shipments since 2019 as high prices and tapered demand restricted growth.

The average selling price (ASP) of smartphones hit a high of $253, with 5% quarter-over-quarter and 12% year-over-year growth in Q3 2023. Vendors focused on affordable 5G devices and discounts to boost channel sales.

5G smartphone shipments reached a record 58% market share, totaling 25 million units in Q3 2023. The ASP of 5G phones dropped to $357, down 9% from last year. Most 5G smartphone launches were in the mass budget ($100-200) segment, increasing its 5G share to 52% from 34% last quarter. Samsung's Galaxy A14, Apple's iPhone 13, and Xiaomi's Redmi 12 were the top shipped 5G models.

By price segment, entry-level (under $100) grew 16% annually with a 20% market share. The mass budget ($100-200) segment, which declined 14% year-over-year, saw its share drop to 44% from 51%. Entry-premium ($200-400) grew 2% with a 22% share, while mid-premium ($400-600) jumped 37% but only accounted for 5% of shipments.

The premium ($600-800) and super-premium (above $800) segments registered the highest growth of 52% and 43%, respectively, driven by flagships like the iPhone 13/14 series and Galaxy S23 series.

Foldable phone shipments hit a record 500,000 units, led by Samsung Galaxy Z Fold5/Flip5, with a 66% share. New launches such as the Moto Razr 40 series by Motorola at lower price points brought the ASP of foldables down to $1,198 from $1,319 last year.

Offline channels continued to dominate, but online sales are expected to pick up in the coming weeks with festive sales events offering deals and discounts.

Samsung surpassed Vivo to take the #1 spot by shipments, although its volumes declined year-over-year. Realme climbed to 2nd place, while Vivo registered the highest growth amongst the top 5 vendors.

Navkendar Singh, AVP – Devices Research, IDC, said, "A range of microfinancing options available on budget devices like no cost EMI offers for longer periods (from 24 to 30 months) and affordability initiatives by all major brands has given a modest start to the festive season. However, as demand softens in the latter half of the quarter (post Diwali), brands may face excess inventory challenges. Hence, the outlook for 2023 remains flat or a low single digit decline. Next year we will see a range of affordable 5G and foldable phones at the mid to premium end, but the inflationary stress and longer refresh cycles will likely limit the annual market growth in 2024".