Smartphone shipments decline by 6% YoY in Q2 2023 in India

India’s smartphone market has registered a 6% year-on-year decline in the June quarter of 2023. However, the rollout of 5G services in India has contributed to the rise in 5G smartphone shipments which accounts for 47%. The 5G smartphone shipments are growing at 45% YoY as per CyberMedia Research (CMR)’s India Mobile Handset Market Review Report for Q2 2023, released Friday.

Market leader Samsung continues to dominate the 5G smartphone market in India, with a 24% market share, followed by OnePlus, which has a 20% market share.

Shipra Sinha, Analyst of Industry Intelligence Group at CMR, says, “This single-digit decline is attributed to the improved macroeconomic condition positively impacting consumer demand and OEMs strategic measures to clear their existing stocks in preparation for the upcoming festive season. Despite the overall decline in smartphone shipments, the 5G smartphone segment showed promising performance capturing 47% market share (up from 31% in Q2 2022). The overall feature phone segment grew 9% YoY.”

Samsung has once again dominated the market with 18% market share. But Vivo is closing the gap and now accounts for 15% market share. Xiaomi, which had 20% market share in the same quarter last year has slipped to the third sport with 15%.  Realme was in the fourth spot with a 12% market share and OPPO on fifth with 10%. Apple captured a 5% market share in the smartphone market in Q2 2023, recording a significant YoY increase of 62% in its shipments. Apple was the top contributor in the Premium segment (>Rs 25,000) with 25% share.

While there was a slump in shipments in the quarter, the market conditions are expected to improve in second half of 2023. According to Menka Kumari, Analyst-Industry Intelligence Group CMR, “The smartphone market is set to bounce back in the second half of 2023, thanks to the festive season and increased consumer spending. The rise of 5G and foldable phones will also boost the market's recovery.”

As the smartphone brands gear up to launch new models in lieu of the festive season, the overall smartphone shipments for the entire year are projected to witness single-digit YoY growth.