Smartphone Shipments in India Remain Flat in 2023: Counterpoint Research

India's smartphone shipments remained flat, with around 152 million units by Q4 2023, amid macroeconomic challenges in the first half of the year.

According to the latest Smartphone Tracker report from Counterpoint Research, the Indian smartphone market saw subdued demand in the first two quarters of 2023 due to high inflation and other economic uncertainties. However, shipments started recovering in the second half, supported by 5G upgrades and solid festive season sales.

Samsung took the top spot in 2023 with an 18% market share for the first time since 2017. One major trend was the surge in premium smartphone sales above Rs 30,000 (around $360). Shipments in the premium segment grew by 64% year-on-year, led by easy financing options. The report also claims that nearly one-third of all smartphones were purchased via some financing scheme.

Moreover, Apple emerged as a major gainer in the premium segment. The company surpassed 10 million shipments in India for the first time and generated the highest revenue among all premium brands. This was driven by strong demand for new iPhones and older models, backed by the opening of Apple retail stores and promotions. Apple's Trade-in programs also made upgrading to iPhones more attractive for consumers.

The offline retail channel continued its growth streak, accounting for 55% of total shipments in 2023, as buyers favoured trying devices in person, leading to higher offline sales. The financing schemes further boosted offline purchases. Some other brands, including OnePlus, Transsion, Google, Lava, and Motorola, saw shipment growth in 2023.

Counterpoint expects foldable devices, enhanced audio-visual features, and applied artificial intelligence to be key smartphone trends steering demand in 2024.

"For many OEMs, the key focus during the year was on taking 5G to the lower segment driven by a shift in consumer preferences. 5G smartphone shipment share crossed 52% in 2023, growing 66% YoY. The last quarter (October-December) exited the market with healthy inventory levels compared to last year, setting the right tone for growth for next year. We believe the market will grow by 5% YoY next year driven by premiumization, diffusion of 5G in lower price bands and better macroeconomic conditions", said Senior Research Analyst Shilpi Jain.