Indian smartphone market sees a declines in Q2; Vivo in the lead

• The Indian smartphone market has reported a decline of 3% in sales in the Q2 2023.
• Vivo has emerged as the market leader in the smartphone segment in Q2.
• Apple and OnePlus reported a growth of over 60% during the quarter.

The Indian smartphone market reported a decline of 3% in Q2 2023, and the shipments in the first six months of the year have declined by 10% to 64 million units.

According to a report by International Data Corporation (IDC), the Indian smartphone market shipped 64 million units in the first half of 2023, a decline of 10% compared to the first half of 2022. In Q2 2023, the Indian smartphone market shipped 34 million units, a 3% year-on-year decline, but a 10% quarter-on-quarter growth.

Customers are moving towards the premium segment

The average selling price (ASP) of smartphones increased by 13% year-on-year to reach $241 (approx. ₹19,950).

While the sub-$200 (approx. ₹16,550) segment continues to dominate, its market share has declined from 70% to 65% in Q2. The $200-$400 (approx. ₹16,550-₹33,100) segment remained flat with a 22% market share.

The $400-$600 (approx. ₹33,100-₹49,660) grew by 34% year-on-year to occupy a 5% market share.

The premium segment, which includes smartphones above $600 (approx. ₹49,660) reported the highest increase at 75% year-on-year to reach a 9% market share.

“Consumers are opting for premium offerings, driven by easy and affordable financing options. IDC expects this growth momentum to continue in the upcoming months in 2023,” said Upasana Joshi, research manager, client devices, IDC India.

5G sales receive a boost

The Indian smartphone industry sold 17 million 5G smartphones in Q2 2023, with an ASP of $366 (approx. ₹30,300). Samsung, Vivo and OnePlus dominated the 5G segment, with a combined share of 54%.

In terms of devices, the iPhone 13 and the OnePlus Nord CE 3 Lite emerged as the highest selling 5G devices.

Q2 2022 smartphone market share

Source: IDC

Vivo climbs the ladder

Vivo has emerged as the market leader in Q2 2023, beating Xiaomi, Realme and Samsung. Vivo recorded a market share of 16% in Q2 2023, up from 14.5% in Q2 2022, reporting a growth of 7.4%.

Xiaomi, the market leader in Q2 2022 has been pushed to the fifth spot with a market share of 11%, down from 17.6% in Q2 2022. Realme dropped down a position to occupy the third position with a market share of 12.6% in Q2 2023, down from 17.5% in Q2 2022.

Poco emerged as the biggest gainer, grabbing a 5% market share in Q2 2023, up from Q2 2022, an increase of 76.5%.

OnePlus and Apple gained 61.1%, to grab 7.2% and 5.5% market share respectively. Apple also has the highest ASP among smartphone makers, at $929 (approx. ₹76,900).

“In the upcoming festive season, the brands will try to spur consumer demand with affordable 5G launches, pre-booking offers, and loyalty/upgrade programs clubbed with festive discounts. The market requires strong double-digit growth in the next few months to see annual growth in 2023, which looks unlikely as of now," said Navkendar Singh, AVP – Devices Research, IDC.

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