Xiaomi continued to hold its lead in the smartphone market in India, with Samsung closely following in its footsteps.
According to a market research firm International Data Corporation survey, the Indian smartphone market declined 10% year-over-year in 2022, with total shipments of 144 million units (IDC).
High Inflation And Increasing ASP
Fascinatingly, the iPhone 13 was the third most shipped gadget of 2022, a reflection of Apple’s popularity in India as a result of several bank incentives and discounts.
This is the lowest number of shipments the market has seen since 2019, with the fall becoming more pronounced as 2022 progresses. Shipments decreased by 27% during the fourth and final quarter of the year. IDC anticipates a challenging future for the Indian smartphone market.
IDC’s Associate Vice President for Devices Research, Navkendar Singh, stated in a press release that vendors and channel partners must rethink their strategies for their entry-level portfolios. Attractive trade-in programs and financing schemes will drive 5G device affordability, he added.
IDC claims that high inflation was one of the causes of the drop in consumer demand. Additionally, it was stated that shipments fell dramatically through both physical and online channels. The good news is that the average selling price (ASP), which just broke a record, rose by 18% to $224.
Other reports, such as those from Counterpoint Research, have previously highlighted this increase in the average selling price.
In contrast, the entry-level category (sub-$150) continues to decline and now accounts for 46% of the market, down from 54% a year earlier. According to IDC, this can be related to the decline in new product introductions in this market sector.
Intriguingly, more 5G phones were supplied in 2022 (50 million) yet their average selling price (ASP) decreased to $395 from $440 in 2021. This is further evidence that more affordable 5G phones were the norm in 2022, and the trend is anticipated to continue to expand in 2023.
The market share of both MediaTek and Qualcomm-based smartphones decreased, while UNISOC’s doubled to 14%. This expansion for UNISOC was mostly driven by realme and Samsung’s entry-level 4G products.
The segments with the most significant increase in India were the mid-premium and premium pricing sectors of $300-$500 and $500+, with respective growth rates of 20% and 55%.
Apple maintained its lead in the premium class with a 60% market share. According to the Counterpoint survey, the iPhone 13 was the best smartphone model of the year.
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IDC Smartphone Market India Report
Xiaomi (21.0% market share in 2022) maintained its dominance in the fourth quarter, although it had a difficult year with a limited entry-level product lineup and ongoing reliance on online sales channels. Other publications have placed Xiaomi in third place.
Samsung (18.1%) followed closely with a portfolio varied across price bands and channels, and the business led the 5G segment. vivo’s (15.9 percent) inventory management ranked third.
The inexpensive A series was largely responsible for Oppo’s ascent to fourth place, surpassing Realme. Meanwhile, realme fell to number five due to the previous quarter’s high inventory levels.
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