According to an industry report released on August 3, 2023, the Indian smartphone market shipped 64 million units during the first half of the year, a decrease of 10% compared to the same period the previous year. The market saw growth in the second quarter (Q2), with an increase of 10% compared to the preceding quarter. However, it still marked a 3% decline year-over-year, with the total number of units for the Q2 coming in at 34 million. The figures were provided by the International Data Corporation (IDC).

The report highlighted that vendors and channels adopted various strategies to clear the existing inventory, which included providing discounts, special offers, and price reductions. This inventory clearance strategy was undertaken to welcome the start of the festive season in the second half of the year. Interestingly, while the overall market showed a contraction, certain players demonstrated robust growth, particularly in the premium segment.

For instance, Apple, which boasts the highest average selling price (ASP) of $929, exhibited a staggering increase of 61% YoY in its growth metrics. Similarly, OnePlus marked a healthy growth rate of 61%, albeit its ASP decreased by 14% YoY to stand at $346. The $600+ price range, termed as the premium segment, saw the highest growth, with an impressive YoY surge of 75%, accounting for a 9% market share.

The report pointed out that consumers seem to have a growing inclination towards premium offerings. This trend is facilitated by easy and affordable financing options. "IDC expects this growth momentum to continue in the upcoming months in 2023," stated Upasana Joshi, Research Manager, Client Devices, IDC India.

Furthermore, around 17 million 5G smartphones were shipped in Q2, with an ASP of $366, marking a decline of 3% YoY. The 5G segment was mainly dominated by Samsung, vivo, and OnePlus, collectively commanding a 54% market share. The highest shipped 5G models during Q2 were reported as Apple's iPhone 13 and OnePlus' Nord CE3 Lite.