Apple records 61% growth in iPhone shipments in India in 2Q23

India's smartphone market declined in the second quarter, and Apple recorded a 61% growth in shipments in the world's second-largest smartphone market. Analysts believe that premiumization will continue into the second half of the year.

According to IDC's market tracker, 34 million smartphones were shipped in the second quarter, down 3% year-on-year, and 64 million units were shipped in the first half of 2023, a decline of 10% from the previous year.

Vivo surpassed Samsung as the top brand in India for the quarter. Xiaomi smartphone shipments fell by almost 40%, with its share ranking dropping to fifth place. iPhone's shipments grew by 61.1% year-on-year, seeing its market share jump to 5.5% in the second quarter.

IDC data shows that smartphone ASP grew by 13% year-over-year, reaching US$241. The sub-US$200 segment saw its share decrease from 70% a year ago to 65%, representing an 11% year-on-year dip. The mid-range segment (US$200-400) remained stable, maintaining a 22% share. The mid-to-high-end segment (US$400-US$600) demonstrated impressive growth, expanding by 34% year-on-year and holding a 5% share in the second quarter. The premium segment (over US$600) exhibited the highest growth rate, surging by 75% year-on-year and reaching a 9% share. Besides, 17 million 5G smartphones were shipped during the quarter, with ASP dropping by 3% compared to the quarter of the previous year, indicating that 5G smartphones are becoming increasingly affordable.

Upasana Joshi, IDC India's research manager for client devices, said that driven by accessible and affordable financing choices, consumers are increasingly choosing premium offerings, adding that the growth to persist throughout 2023.

Navkendar Singh, associated vice president of devices research at IDC, states that during the upcoming festive season, brands will make efforts to stimulate consumer demand by introducing budget-friendly 5G launches, offering pre-booking incentives, and implementing loyalty/upgrade programs in combination with festive discounts. However, the market needs robust double-digit growth in the coming months to achieve annual growth in 2023, which currently appears unlikely.

Businessline quoted Counterpoint data showing that smartphone sales may rise 5% year-on-year in the second half of the year, largely driven by premium smartphones. However, the report, citing Counterpoint data, foresaw that the cumulative sales in 2023 would still be lower than in 2022 despite the expected growth in the year's second half.

Premiumization in India has benefited Samsung and Apple. The Economic Times quoted TM Roh, Samsung Electronics president and head of the MX business, saying that India would be critical for Samsung's recovery and success in the year's second half. Meanwhile, according to Apple's latest earnings report, the company recorded double-digit growth in India.