Counterpoint Research reports that the Indian smartphone market saw a 19% decline in shipments YoY in Q1 2023.
What Happened? Experts attribute the decline to slow demand, high inventory build-up from 2022, market conditions, and growing consumer preference for refurbished phones. Additionally, 5G shipments increased by 23% YoY, and the market share of 5G smartphones increased to 43% in overall shipments.
The decline in shipments mainly affected the sub-₹30,000 segment. The ₹20,000-₹30,000 segment saw a 33% decline in shipments, and the ₹10,000-₹20,000 segment reported the highest decline at 34%.
The sub-₹10,000 segment also reported a decline of 9%. However, smartphones priced above ₹30,000 saw an increase in shipments. Devices above ₹45,000 reported a 66% YoY increase in shipments in Q1 2023, while smartphones priced between ₹30,000-₹45,000 reported a 60% increase in shipments.
Experts note that consumer demand is primarily concentrated around promotional periods, during which smartphone and e-commerce companies offer device discounts. Counterpoint’s Shilpi Jain believes that growth will return in the second half of the year due to faster 5G upgrades, easing macroeconomic pressure, and the festive season.
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