Smartphones that were Made in India saw a sizeable rise in shipments back in the second quarter of this year. However, in the third quarter, it seems that these devices did not see such a great performance in the local market.
The news arrives from a Counterpoint Research report. The known analytics based firm found that smartphones under the ‘Made in India” category saw an overall decline of 8 percent year on year in Q3 2022. During this period, the Indian smartphone market shipped over 52 million Made in India handset units. However, this marked a noticeable fall in sales, which the report believes is likely due to fall in consumer demand.
This decline in sales is also likely linked to the uncertain geopolitics that could be the primary factor. According to Senior Research Analyst Prachir Singh, “The Made in India smartphone shipments declined in Q3 2022 as compared to Q3 2021. Two major forces impacted the growth of such smartphone shipments. First, the decline in consumer demand, especially in the entry level segment, due to the negative macroeconomic indicators. Second, the high channel inventory at the start of the quarter also impacted the manufacturing during the quarter.”
Despite this, the country’s smartphone manufacturing sector is still seeing expansion with almost 63 percent of shipments arriving from in house producers and just 37 percent from third party sources. BYD and Lava were two of the fastest growing brands in terms of total smartphone shipments. The researched further added that “Overall, the manufacturing trend is witnessing an upward trajectory with multiple partnerships happening in recent months, like the ones between Tata Group and Wistron and between Foxconn and Vedanta.” So this decline might not be permanent.
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