As per the latest research study from Counterpoint’s Market Monitor service, India’s smartphone shipments took a hit in 2022, dropping 9% YoY to reach over 152 million units. The decline, which is only the second of its kind in India’s smartphone market, is due to supply constraints and decreased demand in the entry-level and budget segments. However, the premium segment saw a rise, capturing a double-digit share for the first time and leading to growth in retail ASP (Average Selling Price).
Senior Research Analyst Prachir Singh said that consumer demand began to decrease in the second quarter, when the global economy was impacted by high inflation, rising unemployment, and geopolitical conflicts – issues that also affected India’s economy. This led to an inventory build-up across channels and lower-than-expected shipments in the second half of the year. Singh believes that the inventory and demand situation will continue to affect the market in the first half of 2023, but predicts an improvement in the latter half due to the onset of the festive season and upgrades to 5G devices.
Research Analyst Shilpi Jain commented on the competitive landscape, stating that the premium smartphone market’s share continued to rise in 2022, reaching 11%, the highest ever. Jain believes this trend suggests that India’s smartphone market is shifting from being volume-driven to value-driven. There is a reason why the premium segment remained strong and showed double-digit growth. Jain attributes this to an increased focus from OEMs, consumers shifting their focus to premium features, and the availability of a variety of financing schemes like ‘No-cost EMI,’ ‘Buy Now, Pay Later,’ and ‘Samsung finance+.’ She further predicts that the momentum for the premium segment will remain strong in 2023.
Despite the decline in shipments, India’s smartphone market revenue remained quite flat. Samsung dominated the market with a 20% share, driven by its premium smartphone models, particularly the Galaxy S22 series. Apple rose from fourth place in revenue share in 2021 to attain second position in 2022. The iPhone 13 was the top smartphone model in 2022. This shift towards premium segment smartphones may spell a drastic change in market trends for the Indian smartphone market in the coming years.
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