India Smartphone Market Bounced Back In Q4 2023 With 25 Per Cent YoY Growth
Exceeding the 10-million mark in terms of shipments, iPhone maker Apple secured the top position in revenue for the first time-ever in a calendar year.
India's smartphone shipments witnessed a notable 25 per cent year-over-year growth in the fourth quarter (Q4) of 2023, rebounding after a year-long decline, a new report by a market research firm has said. According to Counterpoint Research’s Monthly India Smartphone Tracker, smartphone shipments remained flat last year at 152 million units as the first half of the year was challenging due to macroeconomic turbulence, giving way to low demand and an inventory build-up. Exceeding the 10-million mark in terms of shipments, iPhone maker Apple secured the top position in revenue for the first time-ever in a calendar year.
With an 18 per cent market share, Samsung took the top spot in 2023, for the first time since 2017, followed by Vivo at the second spot with a 17 per cent share, which also led the affordable premium segment (Rs 30,000-Rs45,000) with a 33 per cent market share.
The market started recovering in the second half of the year supported by 5G upgrades and better-than-expected festive sales.
"Driven by the premium segment’s growth and 5G upgrades, India’s smartphone market grew 25% YoY in Q4 2023 after declining for a year. The elongated festive season further aided this growth, as the availability of steep discounts, easy financing schemes and lucrative promotions boosted demand. For many OEMs, the key focus during the year was on taking 5G to the lower segment driven by a shift in consumer preferences," Shilpi Jain, Senior Research Analyst at Counterpoint, said in a statement.
"5G smartphone shipment share crossed 52% in 2023, growing 66% YoY. The last quarter (October-December) exited the market with healthy inventory levels compared to last year, setting the right tone for growth for next year. We believe the market will grow by 5% YoY next year driven by premiumization, diffusion of 5G in lower price bands and better macroeconomic conditions," Jain added.
Premium Smartphone Segment Shines With Over 60 Per Cent YoY Growth
Last year, the premium smartphone segment (above Rs 30,000) experienced a substantial 64 per cent year-over-year growth. This surge was driven by easy financing options, prompting consumers to shift to higher-priced smartphones. Financing played a significant role, with one in every three smartphones being purchased through this method.
Apple's dedicated efforts in India also played a crucial role, surpassing the 10-million-unit milestone in shipments and securing the top revenue position in a calendar year for the first time. This achievement was driven by strong demand for both the latest and older iPhone models. The establishment of proprietary retail stores, coupled with a heightened focus on large-format retail (LFR) through consistent promotions, contributed to increased offline shipments. Additionally, the allure of higher trade-in values provided consumers with an attractive proposition for transitioning to iOS.
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