India smartphone shipment declined 16% in 1Q23, Xiaomi saw more than 40% fall

As the weak consumer demand and high inventory persist, India saw its lowest smartphone shipments in four years, with Xiaomi and Realme experiencing a double-digit fall for the past quarter.

According to IDC's latest market tracker, due to weak consumer demand, uncertain macroeconomic conditions, and high inventory levels, smartphone shipments in India declined by 16% year-on-year to 31 million units in the first quarter of 2023, the lowest first-quarter record in four years.

Samsung led India's smartphone market for the quarter with a 20.1% market share. Vivo slipped a bit and grabbed second place. Oppo shipments rose by 19.6% annually and was ranked third. Xiaomi and Realme saw a 41.1% and 52.2% annual shipment decline, respectively. Compared with Samsung, Oppo, and Vivo, Xiaomi and Realme are the brands that put more focus on the entry-level smartphone segment during the past few years and was hit most when the smartphone market moves toward premiumization.

According to IDC's data, smartphone ASP reached US$265, a record-high in India, as the shipment share of smartphones priced more than US$600 rose to 11%, up from 4% a year earlier. Meanwhile, the shipment share of 5G smartphones increased from 31% to 45% for the same period.

Navkendar Singh, the associate vice president of Devices Research at IDC, expects India's smartphone market growth to remain flat in 2023. Upsana Joshi, the research manager of Client Devices at IDC India, said that with high-end 4G devices making way, 5G smartphones, especially those priced at US$150-300, may further their penetration in India in the second half of 2023.

Source: IDC, May 2023