India smartphone market witnessed first-ever Q1 shipment decline of 20%, here’s why

Gadgets Now Bureau / Updated: Apr 21, 2023, 08:39AM IST

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India smartphone market witnessed first-ever Q1 shipment decline of 20%, here’s why

India’s smartphone market witnessed its first-ever Q1 shipment decline of 20% year-on-year (YoY), a report has said. The decline has been attributed to uneven demand woes that were indicated by the economic situation toward the end of Q4 2022. According to Canalys research, smartphone sale channels remain vulnerable to stock build-up.

“The Indian market faces early-year struggles but vendors keep fueling the market as they remain bullish on long-term prospects,” said Sanyam Chaurasia, Analyst at Canalys.

“Just as the economic indicators toward the end of Q4 2022 clearly suggested that demand would remain sluggish in the short term, it was witnessed so in Q1 2023. Despite this challenge, investments from major brands are pouring in as they align with the government's vision and changing consumer behaviour. They are focusing on optimising retail, manufacturing, local sourcing, and R&D to secure their long-term position in the market,” he added.

Samsung maintains the top spot
The research firm claimed that Samsung remained in the top spot in Q1 2023 with a 21% market share as it shipped 6.3 million units. Oppo overtook Vivo and Xiaomi to grab the second spot with 5.5 million shipments.

At number three was Vivo with 5.4 million shipments due to its strong momentum in the offline channels. Xiaomi slipped to fourth place, shipping 5 million units, while Realme grabbed fifth place with 2.9 million shipments due to a mute online channel.

“Samsung has been efficient with its fast-moving model placement in the offline space. For this quarter, it was the new 5G-capable A-series. Apple's new offline stores staffed by expert employees will further enhance its brand experience and position. While online heavy brands have driven units primarily through e-commerce sales, leading to periodic volume surges,” noted Chaurasia.

According to the analyst, brands must balance channel contributions to keep business operations stable and maintain share.

“Vendors with efficient channel management have proven to be more resilient to market volatility. Post-pandemic, vendors who have nurtured mainline retail channels, have demonstrated stability even during market downturns. Increasing contributions from high-price-band models have encouraged vendors to focus on strengthening their offline channels,” he said.

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