Smartphone brands are in good news again. A recent report by research company Canalys revealed that the Indian smartphone market shipments stabilized at 36.1 million units, a modest decline of one percent, signaling a slight recovery after three quarters of decline. On a sequential basis, the market grew 18 percent as the vendors’ inventory levels improved due to a moderately favorable business environment.
Samsung retained its leading position in the market in Q2 2023 with an 18 percent market share, shipping 6.6 million units. Trailing closely behind, vivo reclaimed the second position after a quarter, shipping 6.4 million units. Xiaomi secured the third spot by shipping 5.4 million units, while realme and OPPO (excludes OnePlus) rounded out the top five by shipping 4.3 million and 3.7 million units, respectively.
According to Canalys analysts there reasons for recovery are as follows:
Smartphone vendors are acclimatizing to the dynamic business environment, focusing on ensuring long-term sustainability.
Brands are cementing their position in the market by collaborating further with the Indian channel ecosystem. Vendors are investing in local suppliers, nurturing retailers and aligning with the government’s vision.
Consumer inclination toward offline shopping in the mass-market and premium segments continues to drive vendors to implement effective offline strategies. For example, Apple opened some offline stores in India in April 2023 to address inventory issues, offer exclusive deals, and provide a unique customer experience. Samsung opened up more flagship stores throughout the country, while OnePlus has taken a creative approach with its pop-up stores, reaching multiple cities in tier-1 and tier-2 regions.
Offline consumer demand, both in rural and urban areas, has surged due to a strong retail consumer preference. On the other hand, online demand has been inconsistent and primarily driven by urban consumers during e-commerce sales periods.
The current government aims to enhance consumer confidence ahead of the upcoming National Elections 2024. Canalys predicts a more favorable demand environment in the second half of 2023 due to improved consumer spending during the festive season.
With India hosting the Cricket World Cup in October 2023, operators will focus on promoting their 5G services. Smartphone brands will strive to gain momentum by pushing their affordable 5G portfolio during this event.