The average selling price of Indian smartphones has increased despite a flat market

• The Indian smartphone market remained flat in Q3 2023 with 44 million shipments.
• 5G smartphones accounted for nearly 60% of the smartphones sold in the country during Q3.
• OnePlus and Poco registered the highest year-on-year growth in shipments.

The Indian smartphone market has remained flat year-on-year in Q3 2023 with 44 million smartphones sold during the period. The Q3 performance remained muted, with September registering the lowest shipments since 2019.

According to a report by International Data Corporation (IDC), tapered demand and high prices restricted growth in Q3 2023. The premium smartphones segment recorded the highest growth in Q3.

Average selling price increases

While the shipments failed to impress, there was an increase in the average selling price (ASP) of smartphones. The ASP increased to ₹21,000, a 5% increase quarter-on-quarter and a 12% increase year-on-year.

At the same time, the ASP of 5G smartphones dropped by 9% year-on-year to ₹29,700, indicating the move towards making 5G smartphones more affordable.

5G smartphone share increases as price declines

With unlimited 5G becoming accessible across the country and smartphone makers launching affordable 5G smartphones, customers have started looking for 5G smartphones.

In Q3 2023, 5G smartphones recorded a 58% market share of overall shipments, with 25 million units sold. At the same time, the ASP of 5G smartphones decreased.

The majority of 5G smartphone launches were in the ₹8,400 to ₹16,700 segment. The share of 5G smartphones in this segment increased from 34% in Q2 to 52% in Q3.

“A swift uptake in affordable 5G smartphone shipments signals bullish sentiments and success of affordability efforts of the vendors. We should expect the previous generation of premium smartphone models to be in high demand this festive season, made affordable by various offers and upfront discounts across channels,” said Upasana Joshi, Research Manager, Client Devices, IDC India.

Samsung continues to lead the smartphone industry

Samsung continued to lead the Indian smartphone industry despite a decline in market share. The company’s market share declined from 18.5% in Q3 2022 to 16.2% in Q3 2023.

The next two positions are held by Realme and Vivo, with 15.1% and 13.9% market share respectively.

Xiaomi falls down to the fourth position

Xiaomi has registered a 32.4% year-on-year decline, with its market share falling from 17.4% in Q3 2022 to 11.7% in Q3 2023. The company has now become the fourth player in the smartphone industry in the country.

OnePlus and Poco record good growth

OnePlus and Poco have emerged as the biggest gainers in Q3 2023. OnePlus recorded a growth of 50.1%, increasing its market share from 4.2% to 6.2% in Q3. Similarly, Poco recorded a 50.8% growth, increasing its market share from 3.8% to 5.7%.

Apple leads the super-premium segment

The super-premium segment reported a growth of 43%, with its overall share increasing from 4% to 6% in Q3. Cupertino tech giant Apple leads the segment, with a 60% market share. Apple’s iPhone 13, iPhone 14 and iPhone 14 Plus helped the company dominate this segment. The next player in this segment is Samsung, which holds a 36% market share, thanks to its Galaxy S23 series and the Galaxy Z Fold 5 and Flip 5 foldables.

Outlook for 2023 remains flat

Despite the festive season, the outlook for 2023 is not very encouraging for smartphone makers.

“A range of micro financing options available on budget devices like no cost EMI offers for longer periods and affordability initiatives by all major brands has given a modest start to the festive season. However, as demand softens in the latter half of the quarter (post Diwali), brands may face excess inventory challenges. Hence, the outlook for 2023 remains flat or a low single digit decline,” said Navkendar Singh, AVP, Devices Research, IDC.

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