India smartphone market declines 10% in 2022, sees lowest shipments since 2019 – Times of India

India’s smartphone market declined 10% on a year-over-year (YoY) in 2022 with 144 million shipments – the lowest since 2019, a new report has said. The shipments also fell 27% YoY to 30 million units in the fourth quarter of 2022 (4Q22) despite multiple price discounts and channel schemes.
International Data Corporation (IDC) attributes this decline to dwindling consumer demand due to high inflation, which remained a challenge throughout the year despite the improved supply situation. The average selling price (ASP) hit a record $224, rising 18% YoY in 2022, as per IDC’s Worldwide Quarterly Mobile Phone Tracker.
“The entry-level segment shrank to 46% of the market, down from 54% a year ago. The dearth of new launches in this critical mass segment was a barrier for new smartphone users, thus limiting the overall market’s growth,” said Upasana Joshi, Research Manager, Client Devices, IDC India.

Feature phone shipments decline
There were a total of 201 million mobile phones shipped in 2022 with a 12% annual decline. Feature phone shipments stood at 57 million, a drop of 18% YoY. Samsung, Xiaomi and Transsion led the Indian mobile phone market.
Smartphone vendor highlights
Xiaomi maintained its lead but faced high inventory during 4Q22 and “had a tough year, with a lean entry-level portfolio”.
Samsung closed the gap to grab the second spot due to a diversified portfolio across price bands and channels. Apart from offering Galaxy A series in the offline channel, the M and F series in the online channel, and the Galaxy S/Flip/Fold in the premium segment, Samsung continued to lead the 5G segment.

Vivo stood at the third position with the help of its T series and iQoo brand. IDC says that the Chinese smartphone maker managed its inventories well.
Its sister brand Oppo climbed to the fourth spot in 4Q22 due to the affordable A series, which accounted for the majority of volume, along with a focus on the F and Reno series.
Realme slipped to the fifth slot in 4Q22 as new shipments fell, owing to high inventory from the previous quarter.
“We should expect a rather difficult and elongated recovery for the smartphone market, as worries around rising prices and excess inventories will remain a concern through at least the first half of 2023,” said Navkendar Singh, Associate Vice President, Devices Research, IDC.
He added that vendors and channel partners “need to rethink their plans for their entry-level portfolios, driving 5G device affordability with attractive trade-in programs and financing schemes.”