The India smartphone market had a tough start this year as the overall market witnessed a 10 per cent-15 per cent decline during the March quarter, but handset maker Poco saw growth in the country in the same quarter. This comes amid falling online sales of mobile handsets which is down by 20 per cent, according to a market intelligence firm. According to Canalys, the Indian smartphone market witnessed the first-ever Q1 shipment decline of 20 per cent year-on-year (YoY). While South Korean tech giant Samsung remained in the top spot in Q1 with a 21 per cent market share, shipping 6.3 million devices, Oppo overtook Vivo and Xiaomi to reach the second spot with 5.5 million device shipments.
The India market is witnessing uneven demand woes and channels remain vulnerable to stock build-up.
The Xiaomi sub-brand was the only handset maker to register growth in online sales channels while the overall Indian smartphone market is witnessing fall in sales, says a report by news agency PTI. The report added that the launch of three models in Poco's C-series under Rs 10,000 and X5 Pro in the price range of Rs 20,000-25,0000 price segment fuelled the company's growth in the first quarter of 2023. According to Himanshu Tandon, Country Head of Poco India, the first quarter has been on track with 68 per cent growth, and preliminary numbers for the second quarter are even higher than the first quarter.
"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 optimizing retail, manufacturing, local sourcing, and R&D to secure their long-term position in the market," Sanyam Chaurasia, Analyst at Canalys, said in a statement.
The smartphone maker also made the announcement on Twitter and wrote: "Can’t keep calm as we just bagged the trophy of being the fastest-growing smartphone brand as per @Canalys! With a whopping 68% YOY growth in Q1’ 23, we extend a heartfelt gratitude for your trust in us."
"Poco India's strategically implemented several initiatives, a consumer-focused approach and dedication to delivering exceptional value products resulted in an impressive 60 per cent repeat purchase rate among its loyal customer base. Poco India also introduced enticing loyalty programs that have received great traction amongst youth, establishing strong brand loyalty," the company said in a media release.
To recall, economic indicators towards the end of the fourth quarter (Q4) of 2022 suggested that handset demand would remain sluggish in the short term, it was witnessed so in Q1 2023.