The smartphone market in India witnessed a slight decline of 3% in shipments in the third quarter of 2023, but it is moving towards recovery, according to a report by Canalys, a leading global technology market analyst firm. The report revealed that Samsung maintained its top position with 18% market share, followed by Xiaomi, which gained momentum with its affordable 5G models. The report also highlighted the growth of the premium segment and the challenges faced by the brands amid global economic concerns.
Samsung leads, Xiaomi follows
According to the Canalys report, Samsung shipped 7.9 million units in Q3 2023, retaining its top spot in the Indian smartphone market. The South Korean giant benefited from its strong portfolio across various price bands and its online and offline presence. Samsung’s Galaxy S23 series and Galaxy Z Fold 3 were among the best-selling premium devices in the quarter.
Xiaomi climbed to the second position with 7.6 million shipments, registering a 10% year-on-year growth. The Chinese brand was driven by its affordable 5G models, such as the Redmi Note 10T and the Mi 11 Lite, which were well received by the online consumers. Xiaomi also expanded its offline channel network and increased its marketing activities to boost its brand image.
Vivo drops to third, Realme and Oppo complete top five
Vivo dropped to the third spot with 7.2 million shipments, witnessing a 9% year-on-year decline. The brand faced stiff competition from Samsung and Xiaomi in the online segment and from Realme and Oppo in the offline segment. Vivo’s flagship X70 series, which was launched in September, did not generate much demand due to its high price and limited availability.
Realme and Oppo (excluding OnePlus) finished fourth and fifth respectively, with 5.8 million and 4.4 million units shipped. Both brands focused on their budget-friendly 5G offerings, such as the Realme Narzo 30 Pro and the Oppo A53s. Realme also launched its first tablet, the Realme Pad, and its first laptop, the Realme Book, in India, aiming to diversify its product portfolio. Oppo, on the other hand, shifted its focus to higher-priced models to prioritize profit margins over volume.
Premium segment grows, budget-friendly 5G options surge
The Canalys report also noted that the premium segment (above INR 30,000) continued to witness robust growth, driven by Samsung’s S23 series and older-generation Apple iPhones which were being offered at attractive deals during the festive sales. The report estimated that the premium segment accounted for 8% of the total smartphone shipments in Q3 2023, up from 6% in Q2 2023.
The report also observed that the market saw a surge in demand for budget-friendly 5G options, with brands like Xiaomi and Realme performing well. The report stated that 5G-enabled smartphones accounted for 19% of the total smartphone shipments in Q3 2023, up from 14% in Q2 2023. The report added that Motorola, Infinix and Tecno also drove limited volume through their new affordable 5G devices.
Market shows signs of recovery amid challenges
The Canalys report concluded that the smartphone market in India showed signs of recovery amid festivities and consumer confidence in the second half of 2023. However, it also cautioned that there are global economic concerns that could potentially impact the market growth. The report cited factors such as supply chain disruptions, chip shortages, rising inflation and currency depreciation as some of the challenges faced by the brands.
Sanyam Chaurasia, Senior Analyst at Canalys, said that “the current challenges have made it tough for brands to preserve market share, manage inventory and maintain profitability simultaneously”. He added that “brands such as OnePlus, Infinix, Tecno and Motorola witnessed strong growth mainly due to expanding channel presence, increased offerings and few carried positive momentum from the chip shortage period of 2021”.
