The third quarter of 2023 saw a 3 per cent drop in smartphone shipments in India, which amounted to a total of 43 million. This diminishing trend can be traced back to global economic slumps, chip shortages, brand strategies, and various other aspects.

Despite the downtrend, the third quarter also saw an improvement in consumer climate, providing an advantageous platform for vendors to leverage newly launched devices, according to an analytical study. A report released by Canalys revealed that Samsung maintained supremacy in the market, securing the lead with an 18 per cent market share and a total shipment of 7.9 million units.

Xiaomi marked its footprints on the second rank by shipping 7.6 million units. Vivo, struggling with the tide, slipped to the third position with a total shipment of 7.2 million units. Amidst this, brands like Realme and OPPO, excluding OnePlus, secured their position in the top five by shipping 5.8 million and 4.4 million units, respectively.

According to this report, there was a surge in demand in the entry-level segment as vendors introduced smartphones compatible with 5G on a mass scale. The festive season sales boosted the demand in the premium segment, offering substantial discounts. This was propelled by robust sales of Samsung's S23 series and older-generations of Apple iPhones, including the iPhone 14 and 13 models.

Interestingly, despite their stronghold, all top five brands experienced a downswing in their yearly sales. On the contrary, several other market players, like OnePlus, Motorola, and Tecno, showcased resilience and contributed towards stabilising the overall market shipments.\

 Senior Analyst at Canalys, stated, 'Some brands like OnePlus, Infinix, Tecno, and Motorola experienced substantial growth. This can be majorly accredited to their widened channel presence, augmented product offerings, and the gained momentum from the chip shortage challenges of the previous year.' He also added that brands have started rethinking their strategies, with OPPO introducing premium-priced models to prioritise profit margins over sheer volume. At the same time, Samsung optimised its product range across various price categories.

The report further highlighted uncertainties prevailing in the growth outlook for 2024 due to the macroeconomic variables, which could have a substantial impact particularly on the more vulnerable entry-level segment.