According to the latest report by search and analytics firm IDC, the Indian smartphone market witnessed 10% YoY decline in Q3, 2022. The report adds that it has been the lowest third quarter since 2019. Despite early festivities, the smartphone market saw this decline.
Reasons behind the decline
The report reveals that the weakening demand and increasing device prices. Both the factors negatively impacted festive buying. “High channel inventory continued to be a concern even with vendors’ efforts on channel schemes and price corrections to clear the stocks. The ASP (Average Selling price) has grown consistently for the past eight quarters in a row due to increasing costs and growing 5G shipments at mid-premium price points”, added the report.
The report further states that the offline shipments also declined by 20% YoY as they struggled to generate demand while competing with aggressive online players. The data also showed an increase in the purchase of MediaTek powered smartphones, while the share of Qualcomm declined.
The premium smartphone segment continued to remain the highest growing price band with 64% growth YoY and 8% share. Apple led with a 63% share of that space, followed by Samsung (22%) and OnePlus (9%).
How the smartphone companies performed
Xiaomi maintained its lead in the Indian smartphone market with 21.2% market share. The report adds that the newly launched Redmi A1 along with the existing Redmi 9A Sport /10A/10 helped garner volumes in the sub-US$200 segment.
Samsung managed to regain its second position. It led the 5G segment with a 27% share of that space, with 53% of its portfolio already on 5G. The recently launched Galaxy M13 was amongst the five highest-shipped devices nationally. On the other hand, Vivo dropped to third place with 14.6% market share. The Chinese smartphone maker remained offline-heavy with a 22% share of the offline space. It also maintained its second slot in the 5G segment with a 15% share in 3Q22.
Realme captured the fourth position with shipments declining at 18% YoY. Two-thirds of Realme shipments went to online channels, where it held strong in second place with an 18% share. The fifth slot is held by Oppo 12.5% market share.
Reasons behind the decline
The report reveals that the weakening demand and increasing device prices. Both the factors negatively impacted festive buying. “High channel inventory continued to be a concern even with vendors’ efforts on channel schemes and price corrections to clear the stocks. The ASP (Average Selling price) has grown consistently for the past eight quarters in a row due to increasing costs and growing 5G shipments at mid-premium price points”, added the report.
The report further states that the offline shipments also declined by 20% YoY as they struggled to generate demand while competing with aggressive online players. The data also showed an increase in the purchase of MediaTek powered smartphones, while the share of Qualcomm declined.
The premium smartphone segment continued to remain the highest growing price band with 64% growth YoY and 8% share. Apple led with a 63% share of that space, followed by Samsung (22%) and OnePlus (9%).
How the smartphone companies performed
Xiaomi maintained its lead in the Indian smartphone market with 21.2% market share. The report adds that the newly launched Redmi A1 along with the existing Redmi 9A Sport /10A/10 helped garner volumes in the sub-US$200 segment.
Samsung managed to regain its second position. It led the 5G segment with a 27% share of that space, with 53% of its portfolio already on 5G. The recently launched Galaxy M13 was amongst the five highest-shipped devices nationally. On the other hand, Vivo dropped to third place with 14.6% market share. The Chinese smartphone maker remained offline-heavy with a 22% share of the offline space. It also maintained its second slot in the 5G segment with a 15% share in 3Q22.
Realme captured the fourth position with shipments declining at 18% YoY. Two-thirds of Realme shipments went to online channels, where it held strong in second place with an 18% share. The fifth slot is held by Oppo 12.5% market share.
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