According to the International Data Corporation (IDC), there has been a significant downturn in the Indian smartphone market, with only 64 million units being shipped in the first half of 2023. Compared with the same period in 2022, this is a 10 per cent decrease. The figures for the quarter ending June 30 were also notably smaller, standing at 34 million units, representing a 3 per cent decline from the second quarter last year. However, there has been a slight uptick of 10 per cent in comparison to the previous quarter ending in March.

The IDC report further provides insight into the specific segments that contribute to the entire market. It found a decrease in the number of smartphones costing less than $200, from 70 per cent in the last year to 65 per cent in the current year. The mid-range segment - smartphones priced between $200 and $400 - managed to keep steady with its 22 per cent share. Meanwhile, the mid-to-high-end segment ($400 to $600), grew to constitute 5 per cent of the market, seeing a sharp increase of 34 per cent year on year. The fastest-growing segment, however, was the premium range, having jumped incredibly by 75 per cent YoY to a 9 per cent market share.

The IDC postulates, there is a perceptible shift towards more premium products, likely facilitated by manageable finance solutions. As touted by Upasana Joshi, the research manager of Client Devices at IDC India, this upward movement towards higher-end offerings is expected to continue throughout 2023. Notably, the market saw 17 million 5G smartphones being shipped in the period. Despite a YoY drop of 3 per cent, the major players in this sector remained Samsung, Vivo and One Plus, emphasizing the growing importance of 5G in India.

Apple and One Plus were the dominant forces in the market for 5G devices, with the iPhone 13 and the Nord CE3 Lite models leading the pack. However, channel-wise, the offline market outranked the online one by far. Outstripping online channels by 11 per cent, the offline market accounted for 54 per cent of total sales. The IDC asserts that the comparatively smaller figures supplied by online.companies like Xiaomi and Realme intensified the decline.

As of June 30, Vivo led the market share at 16 per cent, followed by Samsung and Realme at 15.7 per cent and 12.6 per cent respectively. Poco witnessed the biggest growth at 76.5 per cent, with Apple and OnePlus trailing them with an equal increase of 61.1 per cent. Navkendar Singh, the AVP of Devices Research at IDC, expects brands to push for increased demand in the face of the upcoming festive season using attractive deals like pre-booking offers, loyalty or upgrade programs combined with festive discounts. However, he warns that it seems improbable that 2023 will witness a full-year growth, despite the desperate need for a robust double-digit increase in the following months.