India’s smartphone shipments dipped to about 31 milion items within the January-March quarter, thereby recording the steepest fall of 19 % within the first quarter on year-over-year foundation, market analysis agency Counterpoint mentioned 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 % improve.
“This was the highest ever Q1 decline seen by India’s smartphone market, besides being the third consecutive quarterly decline. Sluggish demand, high inventory build-up carried over from 2022, growing consumer preference for refurbished phones and pessimistic channel view of the market contributed to this decline,” Counterpoint’s market monitor service report mentioned.
5G smartphones’s contribution to complete smartphone shipments reached a document of 43 %.
“With a 20 % share, Samsung led the Indian smartphone market for the second consecutive quarter. It was also the top 5G brand,” the report mentioned.
Samsung’s new 5G-capable A sequence carried out nicely within the offline market, contributing 50 % of the shipments.
Samsung’s ultra-premium section (priced above Rs. 45,000) grew 247 % YoY in March 2023 quarter pushed by the profitable launch of the S23 sequence and financing choices, the report mentioned.
Apple grew 50 % YoY and bought a 6 % 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 % and 62 % shares, respectively.
The cargo of the iPhone maker was fuelled by its new financing scheme with HDB Financial Services and promotions on the most recent iPhone 14 sequence in offline channels.
“Premiumization trend is becoming stronger with each passing quarter. The premium segment’s share almost doubled in the first quarter of 2023 compared to the first quarter of 2022,” Counterpoint senior analysis analyst Prachir Singh mentioned.
Singh mentioned affordability is the important thing right here as extra monetary schemes had been being launched, like Apple’s ‘no-cost EMI with zero down fee’ gives on the most recent premium section, improve in trade-in gives and push from retailers.
“The premium segment’s growth is reducing the mid-tier share as consumers are upgrading to higher-priced smartphones,” Singh mentioned.
Mobile telephone value within the vary of Rs. 20,000-30,000 recorded a 33 % fall in cargo, Rs. 10,000-20,000 section registered a 34 % decline and telephones priced under Rs. 10,000 recorded a 9 % decline in cargo on YoY foundation.
“We are observing a change in consumer behaviour – demand is now concentrated around promotional periods. The beginning of the quarter saw a surge in demand across channels around the Republic Day sales period. However, demand dropped significantly after the sales period. Channel players are now focussing on getting rid of existing inventory instead of creating a fresh inventory of new models,” Counterpoint senior analysis analyst Shilpi Jain mentioned.
She mentioned the quarter’s silver lining got here from 5G smartphones, whose contribution (43 %) crossed 40 % for the primary time, registering a 23 % progress YoY as shoppers stored upgrading to 5G gadgets.
“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 mentioned.
Vivo additionally maintained its second place in the course of the reported quarter with a 17 % market share regardless of a 3 % YoY decline in cargo.
Xiaomi skilled a 44 % YoY drop from first quarter 2022, falling to the third spot in the course of the reporting quarter with a 16 % share.
“The decline was due to weak demand in the sub-Rs. 10,000 segment, more dependence on online channels even when demand is higher in offline channels, and a confusing portfolio. The Redmi Note 12 series received a positive response from consumers, contributing to over 14 percent of Xiaomi’s total shipments,” the report mentioned.
OnePlus was the quickest rising model with 72 % YoY progress within 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 percent YoY growth,” the report mentioned.
