Smartphone makers’ shipments to retail outlets or carriers fell 2% to 148.6 million units in 2023, data from market research firm Canalys showed. The reason for fall in shipments can be attributed to weakness in demand and higher inventory with the dealers, especially during the first half of 2023, analysts said.
In the later half, however, the shipments picked up pace owing to increase in demand during the festive season, which in a way restricted the yearly fall in exports and drove the market towards stability. In the October-December quarter, smartphone shipments rose 20% year-on-year to 38.9 million units, according to Canalys.
In this year, Canalys expects the Indian smartphone market to grow by mid-single digits, driven by affordable 5G phones and the pandemic period replacement cycle. Replacement cycle means consumers discarding their old phones to buy new ones.
“Vendors are entering 2024’s ‘Election Year’ with improved indicators for the consumer market with manageable inflation, a steady interest rate and clear visibility of a stable government to come into power,” said Sanyam Chaurasia, senior analyst at Canalys.
According to Chaurasia, the biggest challenge for vendors, however, this year will be to manage the rising bill of materials costs. In 2023, Samsung maintained top position with a market share of 19% and shipments of 28.4 million units. Vivo secured second position with a market share of 18% and shipments of 26.1 million, followed by Xiaomi with 17% market share and shipments of 25.1 million.
Owing to the festival season last year, Apple ended the year with a 7% market share, up from 4% in 2022. “Apple got the opportunity to push the latest iPhone 15 series during the festive sales, contributing more than 50% to its shipments in Q4 (October-December). Additionally, discounts on the previous-generation iPhone 14 and iPhone 13 models during online sales resulted in Apple’s record shipments,” Chaurasia said.
For Samsung, the growth in the premium segment, along with its latest Galaxy S23 FE launch in the October-December quarter drove shipments, according to Canalys. Brands such as Xiaomi and realme saw their highest offline shipment share in the October-December quarter.
“The premium segment witnessed robust growth, thanks to easy financing options, incentive schemes for retailers and rising disposable income,” Chaurasia said, adding that brands should continually focus on strengthening the confidence of their channel partners to enhance their position in the premium space.
