India’s Smartphone Market Grew by 1% YoY in 2023 to 146 M Units

Introduction

In the dynamic landscape of India’s smartphone market, 2023 witnessed both challenges and opportunities, reflected in the findings of the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker.

With a comprehensive analysis of shipment data, pricing trends, and consumer preferences, IDC’s report provides valuable insights for industry stakeholders navigating the intricacies of one of the world’s largest smartphone markets.

1. Market Overview

Overall Growth: India’s smartphone market shipped 146 million units in 2023, marking a nominal 1% year-over-year (YoY) growth. This growth trajectory was characterized by a robust performance in the second half of the year, which offset a decline observed in the first half.
Average Selling Price (ASP): The ASP reached a record high of US$255, representing a significant 14% YoY increase. This was driven by a shift towards the premium segment (US$600+), which accounted for 10% of the market in 2023, up from 6% in the previous year.

2. Segment Analysis

Entry Level: The sub-US$100 segment experienced a 12% YoY growth, capturing a 20% share of the market. Xiaomi, POCO, and Samsung emerged as key players in this segment.
Mass Budget Segment: Shipments declined in this segment, with vivo, Realme, and Samsung leading despite the challenges.
Entry-Premium to Super-Premium Segments: While the entry-premium segment remained flat, the mid-premium and premium segments showed growth. OnePlus, Samsung, and Apple dominated these segments, reflecting consumer preferences for higher-end devices.

3. Technology Trends

5G Adoption: The year witnessed significant growth in 5G shipments, with 79 million units shipped. The mass budget segment saw a surge in 5G adoption, driven by launches from various brands.
Foldable Phones: Nearly a million foldable phones were shipped, with Samsung maintaining its lead despite increased competition from other players like Motorola and OnePlus.
Processor Preferences: MediaTek-based smartphones gained traction, capturing a 50% share of the market. This shift impacted Qualcomm’s market share, which declined to 25%.

4. Brand Performance

Apple: Despite its high ASP, Apple had a successful year, shipping 9 million units. Its focus on local manufacturing and the popularity of iPhone 13/14 contributed to its performance.
Samsung: Maintaining its leadership position, Samsung faced a slight decline in shipments but achieved a record high ASP. The Galaxy A14 emerged as the top shipped device.
vivo: Climbing to the second position, vivo experienced growth in both shipments and ASPs, distinguishing itself as the only brand among the top five to register growth.
Realme: Despite initial challenges, Realme maintained its position with a focus on affordable launches.

5. Feature Phones and Future Outlook

Feature Phones: After four years of decline, feature phone shipments grew by 8% YoY, driven by new entrants and initiatives like Reliance Jio’s 4G feature phone.
Outlook for 2024: IDC predicts a flat to low single-digit growth in 2024, primarily fueled by upgraders in the (US$200<US$400) segment. Emphasis on affordability, financing schemes, and upgrade programs will be crucial for sustained growth.

Conclusion

As India’s smartphone market continues to evolve, understanding shifting consumer preferences, pricing dynamics, and technological advancements is essential for brands to stay competitive. IDC’s insights provide valuable guidance for industry players seeking to navigate the complexities of this dynamic market landscape in the coming years.

By leveraging these insights and adapting strategies to meet evolving consumer needs, brands can position themselves for success in India’s vibrant and rapidly growing smartphone market.