India’s smartphone shipments dipped to about 31 million items within the January-March quarter, thereby recording the steepest fall of 19 per cent within the first quarter on year-over-year foundation, market analysis agency Counterpoint stated on Thursday.
Mobile telephones priced under Rs 30,000 apiece recorded a pointy decline whereas cargo within the premium and extremely premium class registered 60-66 per cent improve.
“This was the best ever Q1 decline seen by India’s smartphone market, moreover being the third consecutive quarterly decline. Sluggish demand, excessive stock build-up carried over from 2022, rising client choice for refurbished telephones and pessimistic channel view of the market contributed to this decline,” Counterpoint’s market monitor service report said.
5G smartphones’ contribution to total smartphone shipments reached a record of 43 per cent.
“With a 20 per cent share, Samsung led the Indian smartphone market for the second consecutive quarter. It was also the top 5G brand,” the report stated.
Samsung’s new 5G-capable A sequence carried out nicely within the offline market, contributing 50 per cent of the shipments.
Samsung’s ultra-premium section (priced above Rs 45,000) grew 247 per cent YoY in March 2023 quarter pushed by the profitable launch of the S23 sequence and financing choices, the report stated.
Apple grew 50 per cent YoY and bought a 6 per cent share in March 2023 quarter.
Apple maintained its lead within the general premium section (Rs 30,000) in addition to within the ultra-premium section ( above Rs 45,000) with 36 per cent and 62 per cent shares, respectively.
The cargo of the iPhone maker was fuelled by its new financing scheme with HDB Financial Services and promotions on the newest iPhone 14 sequence in offline channels.
“Premiumization development is turning into stronger with every passing quarter. The premium section’s share nearly doubled within the first quarter of 2023 in comparison with the primary quarter of 2022,” Counterpoint senior research analyst Prachir Singh said.
Singh said affordability is the key here as more financial schemes were being launched, like Apple’s ‘no-cost EMI with zero down payment’ offers on the latest premium segment, increase in trade-in offers and push from retailers.
“The premium segment’s growth is reducing the mid-tier share as consumers are upgrading to higher-priced smartphones,” Singh stated.
Mobile cellphone worth within the vary of Rs 20,000-30,000 recorded a 33 per cent fall in cargo, Rs 10,000-20,000 section registered a 34 per cent decline and telephones priced under Rs 10,000 recorded a 9 per cent decline in cargo on YoY foundation.
“We are observing a change in client behaviour – demand is now concentrated round promotional durations. The starting of the quarter noticed a surge in demand throughout channels across the Republic Day gross sales interval. However, demand dropped considerably after the gross sales interval. Channel gamers are actually focussing on eliminating present stock as an alternative of making a recent stock of recent fashions,” Counterpoint senior analysis analyst Shilpi Jain stated.
She said the quarter’s silver lining came from 5G smartphones, whose contribution (43 per cent) crossed 40 per cent for the first time, registering a 23 per cent growth YoY as consumers kept upgrading to 5G devices.
“We believe these situations will remain similar in the second quarter of 2023 as well with growth coming back in the second half of the year owing to faster 5G upgrades, easing macroeconomic pressure and festive season,” Jain stated.
Vivo additionally maintained its second place in the course of the reported quarter with a 17 per cent market share regardless of a 3 per cent YoY decline in cargo.
Xiaomi skilled a 44 per cent YoY drop from first quarter 2022, falling to the third spot in the course of the reporting quarter with a 16 per cent share.
“The decline was as a consequence of weak demand within the sub-Rs 10,000 section, extra dependence on on-line channels even when demand is greater in offline channels, and a complicated portfolio. The Redmi Note 12 sequence acquired a optimistic response from customers, contributing to over 14 per cent of Xiaomi’s whole shipments,” the report stated.
OnePlus was the fastest growing brand with 72 per cent YoY growth in the March 2023 quarter.
“Among local brands, Lava did well with its refreshed portfolio in the sub-Rs 10,000 segment. Lava continues to offer the cheapest 5G smartphone (Blaze 5G). It was also the third fastest-growing brand in Q1 2023 with 29 per cent YoY growth,” the report stated.
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