India’s smartphone shipments remained flat in 2023 at 152 million units and Samsung took the top spot, for the first time since 2017, with an 18 per cent share, though lesser than what it had in 2022 at 19.4 per cent.

Vivo took the second spot in 2023 with a 17 per cent (15.8 per cent 2022) share and led the affordable premium segment (₹30,000-45,000) with a 33 per cent share, said the latest research from Counterpoint’s Monthly India Smartphone Tracker on Wednesday.

Xiaomi slipped to the third spot in 2023 with a market share of 16.5 per cent, compared to 20.3 per cent in 2022, said the report, adding that Apple shipments crossed the 10-million mark, helping it capture the top position in revenue for the first time ever in a calendar year.

The report also said 5G smartphone shipment share crossed 52 per cent in 2023, growing 66 per cent on year-on-year (y-o-y) basis. The first half of the year was challenging due to ongoing macroeconomic turbulence leading to low demand and an inventory build-up. The market started recovering in the second half of the year, supported by 5G upgrades and better-than-expected festive sales, it said.

“Driven by the premium segment’s growth and 5G upgrades, India’s smartphone market grew 25 per cent y-o-y 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,” said Shilpi Jain, Senior Research Analyst at Counterpoint.

For many original equipment manufacturers (OEMs), the key focus during the year was on taking 5G to the lower segment, driven by a shift in consumer preferences, she said.

“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 five per cent y-o-y next year, driven by premiumisation, diffusion of 5G in lower price bands and better macroeconomic conditions,” she added.

Premium segment

The premium segment (above ₹30,000) witnessed 64 per cent y-o-y growth in 2023, driven by easy financing schemes, which resulted in consumers jumping price bands to purchase higher-priced smartphones.

“One out of every three smartphones was purchased through financing in 2023. Apple’s focus on India is also aiding the trend...propelled by robust demand for both its latest and older iPhones. The opening of own retail stores and increasing focus on large-format retail (LFR) through regular promotions contributed to increased offline shipments. Besides, higher trade-in values presented an appealing proposition for consumers to transition to iOS,” said Shubham Singh, Research Analyst, Counterpoint.

The report also said that offline channels witnessed growth throughout the year to reach 55 per cent share in 2023, driven by consumers’ preference for the look and feel of the device.

In 2024, there will be a huge OEM focus on CMF across different price points, encouraging consumers to opt for the same. There will be a growing trend of audio-video enhancements in smartphones, powered by features like Dolby Atmos, Dolby Vision and Dolby Vision recording, it said adding that foldables will also become more popular in the premium segment as more OEMs are coming up with foldable devices.

“We believe that foldable shipments will cross the one-million milestone in 2024,” the analysts added.

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