Indian phone market saw no growth in Q3 2023; Realme overtakes Vivo: IDC
Recent research shows that the sluggish performance in the quarter caused the smartphone market in India to remain flat year-on-year in Q3 2023 with shipments of 44 million units. The forecast for the market in 2023 suggests that shipments will remain flat or decline slightly. The research adds that the first two months of Q3, July and August, saw single-digit growth as channels started seasonal restocking early. However, September saw the lowest shipments since 2019 due to weaker demand and high prices.
a report India’s smartphone market, reported by International Data Corporation (IDC), maintained a flat 44 million unit shipments in Q3, resulting in flat year-on-year growth. The ASP (average selling price) increased 12 percent YoY and 5 percent QoQ (quarter-on-quarter) to peak at $253 (roughly Rs. 21,000).
The report noted that vendors across all channels, online and offline, prioritized budget 5G smartphones over others. 5G smartphone shipments accounted for 25 million units, achieving a record 58 percent share. Since most 5G models were launched in the mass budget range ($100 < $200 (approximately Rs. 8,300 < Rs. 16,700)), the 5G share of the segment increased from 34 percent to 52 percent. The top three 5G models that shipped in the third quarter of the year were Apple’s iPhone 13, Xiaomi’s Redmi 12 and Samsung’s Galaxy A14.
Samsung overtook Vivo as the most popular brand, despite a YoY decline in shipments. Among the top five brands, Samsung had the highest ASP at $381 (roughly Rs. 31,700), up 43 percent YoY. The report also noted that with the help of the recently launched Realme C53 and Realme 11x, the Chinese brand rose to the second position. Barring iQoo, Vivo had the fastest growth among the top five brands, thanks to its moderately priced Vivo Y and Vivo T series phones. Poco and OnePlus both saw YoY growth of 50 percent or more, with the OnePlus Nord CE3 Lite accounting for 35 percent of shipments.
In just one quarter, shipments of foldable phones reached a record 500,000 units, with Samsung holding a 66 percent market share. The average selling price of foldable phones fell to $1,198 (roughly Rs. 99,800) from $1,319 (roughly Rs. 1,09,800) from a year ago, thanks to new releases from Motorola at lower price points.
Shipments through offline channels grew by double digits in Q3 2023, continuing to outpace online channels. According to the report, a number of eTailer events (such as Amazon Great India Festival and Flipkart’s Big Billion Days) with exclusive online deals and special platform prices helped drive online demand.
