India's shipment of smartphones remained constant at 44 million units during the quarter resulted in September, in line with the data released by International Data Corporation. This sluggish movement is the outcome of decreasing demand and escalating prices. Though there was a moderate growth in the months of July and August due to early festive stocking, the overall sales remained more or less the same for the first half of this year. The shipment made in September was at its lowest since 2019.

The softening demand during the latter half of the quarter might pose significant inventory challenges for brands. Hence, the projection for 2023 does not visualize much growth, with a flat or a minor single-digit decline expected. Notwithstanding, the next year would bring a variety of affordable 5G and hi-tech foldable phones in the mid to premium category. Though, it is apprehended that the increasing inflationary pressure coupled with extended refresh cycles might restrict the annual market expansion in 2024, as stated by Navkendar Singh, Assistant Vice President – Devices Research, IDC.

Out of all brands, Samsung secured the highest market share of 18.5%, followed by Realme, Vivo, Xiaomi and Oppo. The market saw implementation of different microfinancing options on budget devices, such as zero-cost EMI options spread over a longer duration, ranging from 24 to 30 months. This, in addition to affordability initiatives launched by the leading firms, gave a humble kickstart to the festive season.

Even with the grim forecast, some factors worked in favor of the brands. The Average Selling Price touched a peak of $253 or 21,000, noting a quarterly growth of 5% and yearly growth of 12% for the quarter concluded in September. This indicated a healthier profit margin for the companies, as the prices continue to surge. The sellers concentrated on cost-effective 5G devices, offering discounts across all mediums, which dropped the ASP for 5G enabled phones to around 30,000. The reduction in price of these phones is expected to boost their sales in comparison to their 4G equivalents.

The market share of 5G phones in the budget category, i.e. phones under 17,000, saw a steep rise from 34% to 52% within a quarter. A notable 58% share translates into 25 million units of 5G smartphone shipments during the quarter, setting a new record. The decrease in 5G ASP to $357 in 3Q23, down by 9% YoY, was seen. Samsung’s Galaxy A14, Apple’s iPhone 13, and Xiaomi’s Redmi 12 were the highest shipped 5G smartphones in this quarter, as mentioned by the research firm.

The premium segment, lying between 49,000 and 65,000, experienced the highest growth of 52%, spurred by the sales of iPhone 13, Galaxy S23/S23 FE and the newly launched Moto Razr 40. The super-premium segment also saw a hefty 43% growth, with its share rising from 4% to 6% in 3Q23. Apple ruled this segment with high shipments of its iPhone13/14/14 Plus contributing to its 60% share. Samsung also increased its share to 36%, up from 24% in 3Q23, thanks to the launch of its Galaxy Z Fold5/Flip5 and Galaxy S23+, S23 Ultra.

The foldable phones also marked a new high, with almost half a million units being shipped in a single quarter, of which Samsung accounted for 66% share. Introduction of more affordable models by Motorola pulled down the ASP for foldable phones to $1198, or approximately 1 lakh, which represented a slump from $1319 or 1.09 lakh the previous year.