India’s smartphone market in the first half of 2023 (1H23) shipped 64 million units, a decline of 10% year-over-year (YoY). The second quarter (Q2’23), however, indicated some signs of recovery with growth of 10% over the previous quarter, even though there was still a decline of 3% YoY with 34 million units. This recent growth can be attributed to vendors and channels focusing on inventory clearance through discounts, special offers, and price drops as they prepared for the upcoming festive season according to IDC.
The average selling price (ASP) has seen some fluctuations. In Q2’23, the ASP declined by 8% quarter-over-quarter (QoQ) but grew by 13% YoY to reach $241. This fluctuation can be traced back to shifts in the market segments. The share of the sub-$200 segment dropped by 11% YoY, falling to 65% from 70% a year ago. The mid-range segment, priced between $200 and $400, remained stable at a 22% share, while the mid-to-high-end segment, priced between $400 and $600, experienced growth of 34% YoY, reaching a 5% share. The most significant growth was in the premium segment, priced at $600 and above, which grew by 75% YoY, reaching a 9% share.
One of the driving forces behind this growth in the premium segment is the availability of easy and affordable financing options. IDC predicts this growth momentum will likely persist in the upcoming months of 2023, reflecting a shift in consumer preferences towards higher-end products.
The 5G smartphone segment is another area of interest, with 17 million units shipped at an ASP of $366 in Q2’23, marking a decrease of 3% YoY. Key players in the 5G market were Samsung, vivo, and OnePlus, who together held a combined share of 54%. Among the specific models, Apple’s iPhone 13 and OnePlus’ Nord CE3 Lite stood out as the highest shipped 5G models during 2Q23.
