India’s Smartphone Market Hits a 20% Slump in Q1 2023

The ever-growing smartphone market in India had a tough start to the year as Canalys, a global technology market analyst firm, reported a record 20% slump in Indian smartphone shipments.

The Indian smartphone market is one of the biggest battlegrounds where smartphone manufacturers compete to get a piece of the pie. Consumers range from wanting to get the cheapest smartphone possible to splurging on cutting-edge flagships that cost a fortune.

Samsung Leads the Smartphone Market with 21% Share in Q1 2023

The Indian smartphone market has seen a record decline of 20% for shipments in Q1 2023. Despite the market’s uneven demand challenges and the risk of excess inventory in the channels, Samsung maintained its leadership position in Q1 2023 with a 21% market share, delivering 6.3 million units. In addition, the South Korean conglomerate’s flagship S23 series outperformed its S22 series in the country, selling 1.4 times more.

As shown in the table below, the source reported that OPPO surpassed Vivo and Xiaomi to secure second place with 5.5 million deliveries, supported by successful new product introductions. Vivo followed closely in third place with 5.4 million deliveries, as it sustained strong performance in the offline channels.

Xiaomi dropped to fourth place, delivering 5 million units, while Realme stayed in fifth place with 2.9 million deliveries as the online channel remained subdued.

Sanyam Chaurasia, an Analyst at Canalys, said that the Indian market was faced with early-year struggles but was fueled by vendors who were bullish on long-term prospects.

He explained that the sluggish demand in the short term was suggested by the economic indicators in late Q4 2022 and was confirmed in Q1 2023. He further added that major brands were investing heavily to align with the government’s vision and changing consumer behavior.

Chaurasia went on to say that vendors with effective channel management suffered less, and companies that performed well in the offline market demonstrated stability during the first quarter.

Samsung is one of them, with the launches of the Galaxy A and Galaxy S between January and March helping to mitigate the impact; Apple, with its new flagship stores in the country, aiming to increase its offline presence and thus improving its brand experience and position.

There Is Still Hope for the Smartphone Market

Despite how dismal the year looks to be, Chaurasia expresses optimism for the market, stating that as disposable income gradually grows, consumers are eager to spend more on premium devices. He adds that brands must focus on availability, affordability, and aspirational value to succeed in this segment.

Source – Canalys