India’s smartphone market fell by 10% Y-o-Y in last quarter to 43.5 million units, marking the lowest third-quarter shipment since 2019. A high inventory pile-up is expected to lead to a muted fourth quarter.
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New Delhi, November 15: Smartphone sales in India are once again in the spotlight due to poor demand in the domestic market. According to latest data released by International Data Corporation (IDC), last quarter of FY2022-23 was the lowest third quarter shipment since 2019 despite an earlier onset of the Diwali festivities.
One of the reasons for the poor demand of smartphones can be attributed to increase in price of devices. As per IDC’s Worldwide Quarterly Mobile Phone Tracker report, India smartphone market declined 10% year-over-year (YoY) shipping to 43 million units between July-September.
Several other institutions and agencies have also reported shipment decline of smartphones. Earlier in November, a report by Counterpoint Research stated that the smartphone shipment in India has fallen by 11%.
Upasana Joshi, research manager, client devices, IDC, has said, “The average selling price has grown consistently for the past eight quarters in a row due to increasing costs and growing 5G shipments at mid-premium price points.”
Earlier this month, was reported that India to become the second largest market for smartphones. Latest sales & shipment reports, however, suggest that challenges like the impact of inflation on consumer demand, increasing device costs, and slow feature phone-to-smartphone migration will continue to worry the segment in 2023 as well.
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