Smartphone shipments by India record steepest Q1 decline

India’s smartphone shipments dropped to about 31 million units in the January-March quarter, registering the steepest decline of 19% YoY in Q1 2023.

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Smartphone shipments by India have logged in the third consecutive quarterly decline. A high inventory build-up carried over from 2022, rising preference for refurbished phones, languishing demand and a bleak channel view of the market, together accounted for the decline in smartphone shipments. 

According to a market research firm, Counterpoint, smartphone shipments from India dropped to about 31 million units in the January-March quarter, recording the steepest decline of 19% year-over-year in the first quarter of 2023 (Q1 2023). 

Mobile phones in the price range of Rs 20,000-30,000 recorded a 33% drop in shipment, Rs 10,000-20,000 segment registered a 34% decline and phones in the price range below Rs 10,000 logged a 9% decline in shipment year on year (YoY) basis. However, growth is expected in the second half of the year on account of faster 5G upgrades, easing macroeconomic pressure and the festive season.

Senior Research Analyst Prachir Singh said, “Premiumization trend is becoming stronger with each passing quarter. The premium segment’s share almost doubled in Q1 2023 compared to Q1 2022. Affordability is the key here as we saw more financial schemes being launched, like Apple’s ‘No-cost EMI with zero down payment’ through HDB Financial Services, offers on latest premium segment launches, increase in trade-in offers and push from retailers.”

He added, “The premium segment’s growth is reducing the mid-tier share as consumers are upgrading to higher-priced smartphones. The sub-INR 10,000 price band continued to decline in Q1 2023, with its shipments falling 9% YoY. This segment is suffering declining demand due to an elongated replacement period, declining feature phone-to-smartphone migration and lower presence of hero models.”