vivo, Samsung grab top spots in Indian smartphone market as POCO, Apple and OnePlus show maximum growth YoY

Apple registered a remarkable growth of 61% YoY, despite boasting the highest average selling price (ASP)of US$929. OnePlus also achieved a healthy growth rate of 61%, although its ASP dropped by 14% YoY to US$346. POCO, with its very affordable C series models, experienced the highest growth of 76% among the top ten brands. vivo (excluding iQOO) emerged as the market leader, driven by the success of its V series models, closely followed by Samsung, which focused on the growth of its higher-end portfolio, according to data provided by IDC.

In terms of market segmentation, there were notable changes in the share of different price segments. The sub-US$200 segment saw a decline from 70% to 65% YoY, marking an 11% dip. The mid-range segment (US$200

Dip in Smartphone sales

The Indian smartphone witnessed a YoY dip of 10% in the first half of 2023. The market shipped a total of 64 million units in 1H23, but this figure showed a decline of 10% compared to the same period last year (YoY). However, in the second quarter of 2023 (2Q23), the market witnessed growth, shipping 34 million units, which was a 10% increase over the previous quarter. Despite this positive development, 2Q23 still experienced a 3% YoY decline.

After several quarters of growth, the ASP of the smartphone segment declined by 8% QoQ but managed to grow by 13% YoY, reaching US$241 in 2Q23.“Consumers are opting for premium offerings, driven by easy and affordable financing options. IDC expects this growth momentum to continue in the upcoming months in 2023,” said Upasana Joshi, Research Manager, Client Devices, IDC India.

The decline in 2Q23 can be attributed to the focus of vendors and channels on clearing their inventory before the start of the festive season in the second half of the year. To attract consumers, various discounts, special schemes, and price drops were offered during this period.

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5G Smartphone Segment

In the 5G smartphone segment, 17 million units were shipped in 2Q23, with an average selling price of US$366, reflecting a 3% YoY decrease. Samsung, vivo, and OnePlus emerged as the leaders in this segment, holding a combined share of 54%. The highest shipped 5G models in 2Q23 were Apple's iPhone 13 and OnePlus' Nord CE3 Lite.

Online vs Offline

Regarding distribution channels, the online channel saw a decline of 15% YoY in overall shipments, while the offline channel experienced an 11% growth, capturing a 54% share. The online-heavy players, such as Xiaomi and realme, faced relatively lower shipments, which contributed to the drop in the online channel.

“In the upcoming festive season, the brands will try to spur consumer demand with affordable 5G launches, pre-booking offers, and loyalty/upgrade programs clubbed with festive discounts. The market requires strong double-digit growth in the next few months to see annual growth in 2023, which looks unlikely as of now," says Navkendar Singh, AVP – Devices Research, IDC.

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