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Entry-level smartphone shipment shrinks in 2022: IDC

New Delhi: The share of smartphones shipped in the entry-level segment (under 8,000) in the overall shipment shrunk to 46% in 2022 from 54% a year ago, according to International Data Corporation’s (IDC) latest quarterly mobile phone tracker, released Friday. 

The total number of smartphone shipments fell 10% to 144 million in 2022, while shipments during the December quarter fell by 27% year-on-year (YoY) to 30 million units, the report added.

According to IDC, most mass users are not buying new smartphones due to growing prices, while in the entry-level segment lack of choices is a major dampener.

“The dearth of new launches in this critical mass segment was a barrier for new smartphone users, thus limiting the overall market’s growth,” said Upasana Joshi, research manager, Client Devices at IDC India.

Mint had reported last year that most brands chose to focus more on the premium smartphones due to the economic downturn. More launches in these segments and the growing price of components have also impacted the average selling price of smartphones. According to IDC, the ASP of smartphones in India increased by 18% to $224 (approx 18,000) in 2022.

Though shipments in the sub-$300 (approximately 25,000) segment declined by 15%, the mid-premium segment ($300-500) grew by 20% while the premium segment (above $500) also grew 55%, claims the IDC report. 

Apple continued its good run in the premium segment on the back of strong demand for the iPhone 13. iPhones accounted for 60% of shipments in the premium segment with the iPhone 13 emerging as the third-highest shipped smartphone of the year.

Even though the ASP of smartphones is growing, the ASP of 5G smartphones has fallen as more brands are launching 5G smartphones in the mid-segment. According to IDC, 50 million 5G smartphones were shipped in 2022 with an ASP of $395, down from $431 in 2021.

Analysts at IDC expect the 5G smartphones to account for 60% of total smartphone shipments this year.

Navkendar Singh, Associate Vice President, Devices Research, IDC, warned that recovery will be prolonged and difficult for the smartphone market due to concerns over rising prices and excessive inventories.

“Vendors and channel partners need to rethink their plans for their entry-level portfolios, driving 5G device affordability with attractive trade-in programs and financing schemes,” he added.

Further, the IDC report shows that feature phones still account for close to a quarter of the total 201 million mobile phones shipped in 2022. Shipment of features phones fell by 18% to 57 million.

In terms of market share, Xiaomi is still the number one smartphone vendor in India, as per IDC data, and accounted for 21% of overall shipments. It was followed by Samsung (18.1%), Vivo (15.9%), Realme (14.5%), and Oppo (11.9%).

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