Premium Segment Shines Even As Overall Smartphone Market Declines In India: IDC

Samsung, Vivo and OnePlus were the leaders in the 5G segment with a combined market share of 54 per cent.

Handset maker Poco with its very affordable C series models registered the highest growth amongst the top ten brands. Representative image.

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The India smartphone market shipped 64 million units in the first half (H1) of 2023 and registered a decline of 10 per cent YoY (year-over-year), a new report said on Thursday. In the second quarter (Q2), the market grew by 10 per cent over the previous quarter but declined by 3 per cent YoY with 34 million units, said International Data Corporation's (IDC) Worldwide Quarterly Mobile Phone Tracker. However, the premium smartphone segment ($600+) grew the highest, up 75 per cent YoY reaching 9 per cent market share.

The smartphone vendors and channels focused on clearing the inventory by offering discounts, special schemes, and price drops before the start of the festive season in H2 of the year.

“Consumers are opting for premium offerings, driven by easy and affordable financing options. IDC expects this growth momentum to continue in the upcoming months in 2023,” Upasana Joshi, Research Manager, Client Devices, IDC India, said in a statement.

The ASP (average selling price) declined by 8 per cent QoQ, but grew by 13 per cent YoY, hitting $241 in Q2, after several quarters of growth. The share of the sub-$200 segment declined to 65 per cent from 70 per cent a year ago, which is a dip of 11 per cent YoY. The mid-range segment ($200<$400) remained flat with a 22 per cent market share, while the mid-to-high-end segment ($400<$600) with a 5 per cent share, grew by 34 per cent YoY in Q2.

Samsung, OnePlus, Vivo Shipped Most 5G Phones 

Seventeen million 5G smartphones were shipped with an ASP of $366 in Q2, which is a decline of 3 per cent YoY. Samsung, Vivo and OnePlus were the leaders in the 5G segment with a combined market share of 54 per cent. Apple’s iPhone 13 and OnePlus’ Nord CE3 Lite were the highest-shipped 5G models in Q2.

Overall shipments to the online channel dropped by 15 per cent YoY. The offline channel, however, grew by 11 per cent, grabbing a 54 per cent share. This was a result of relatively lower shipments from online-heavy players such as Xiaomi and Realme.

Apple, with the highest ASP of $929, registered a massive 61 per cent YoY growth. OnePlus too registered a healthy growth of 61 per cent, although its ASP dropped by 14 per cent YoY to $346.

Poco Sees Highest Growth Among Top 10 OEMs

Handset maker Poco with its very affordable C series models registered the highest growth amongst the top ten brands. Vivo (excluding iQOO) emerged as the market leader as it drove its growth for its V series models, closely followed by Samsung which focused on the growth of its higher-end portfolio of devices. This indicates that consumers have an appetite for premium devices.

“In the upcoming festive season, the brands will try to spur consumer demand with affordable 5G launches, pre-booking offers, and loyalty/upgrade programmes clubbed with festive discounts. The market requires strong double-digit growth in the next few months to see annual growth in 2023, which looks unlikely as of now," said Navkendar Singh, AVP – Devices Research, IDC.