India smartphone market declined 10% year-over-year (YoY) shipping 43 million units in 3Q22 (July-September), according to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker. This was the lowest third-quarter shipment since 2019 despite an earlier onset of the Diwali festivities. Weakening demand and increasing device prices 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. Overall, the ASP (average selling price) reached a record US$226, growing by 15% YoY and 6% QoQ.
“The ASP has grown consistently for the past eight quarters in a row due to increasing costs and growing 5G shipments at mid-premium price points,” said Upasana Joshi, Research Manager, Client Devices, IDC India.
Key highlights of 3Q22 included:
Top 5 Smartphone Vendor Highlights
Xiaomi maintained its lead, but with declining shipments (-18%) YoY in 3Q22. More than 70% of shipments went to online channels, resulting in a share of 27% of the online channel (including sub-brand POCO). The newly launched Redmi A1 along with the existing Redmi 9A Sport /10A/10 helped garner volumes in the sub-US$200 segment.
Samsung regained its second slot, but with flat shipments of 8 million in 3Q22. It led the 5G segment with a 27% share of that space, with 53% of its portfolio already on 5G. Also, its online portfolio driven by the Galaxy M and F series ensured a strong 18% online share (tied with realme). The Galaxy M13 was amongst the five highest-shipped devices nationally.
vivo dropped to the third position, with a 20% YoY decline in shipments. 35% of its shipments went to the online channel, its highest ever, led by the T series and iQOO lineup. But the brand 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 dropped to the fourth position, with shipments declining at 18% YoY. Its C series continued to drive the majority of its volumes, with the C35 as the highest-shipped smartphone nationally. Two-thirds of realme shipments went to online channels, where it held strong in second place with an 18% share.
OPPO, in the fifth slot, was the only vendor among the Top 5 with shipment growth at 6% YoY. OPPO too had grown its online portfolio with a 23% contribution, while it stood at the leadership slot in offline channels. OPPO had a clear focus on enhancing its lineup in the US$300-500 segment, driven by the Reno8 series.
“Inventory pile up and post-festive cyclical demand tapering will lead to a muted 4Q22. 2022 is likely to see shipments of around 150 million units, a decline of 8-9% YoY. The major challenges going into 2023 are the impact of inflation on consumer demand, increasing device costs, and slow feature phone-to-smartphone migration. However, the migration of 4G smartphone users to 5G smartphones should give a growth fillip to the market in 2023, especially in the mid-premium and above segments," says Navkendar Singh, Associate Vice President, Devices Research, IDC.
