Indian smartphone vendors experienced 20 per cent year-on-year (YoY) rebound in Q4 2023, propelled by robust demand during the festival season, according to the latest Canalys research.
The quarter saw a total of 38.9 million units shipped, showcasing the resilience of the market in the face of challenges. Maintaining its leadership, Samsung claimed the top position in Q4 with a 20 per cent market share, shipping 7.6 million units. Xiaomi closely followed, securing the second spot by shipping 7.2 million units, while vivo secured third place with shipments totaling 7.0 million units.
realme and OPPO, excluding OnePlus, rounded out the top five with shipments of 4.5 million and 3.7 million units, respectively.
Despite facing inventory challenges, minimal inflation improvements, and fluctuating demand throughout 2023, the Indian smartphone market remained stable, ending the year with a minor 2 per cent drop in shipments, totaling 148.6 million units. A key factor contributing to this stability was the growing investment in mainline retail space, proving beneficial not only for vendors but also stabilising the overall market.
Xiaomi and realme showcased their adaptability in Q4, achieving their highest offline shipment shares. Xiaomi democratised its portfolio, contributing equally to offline and online channels. The Redmi 12 5G and the recently launched Redmi 13C series significantly contributed to its offline share. Similarly, realme adopted a balanced approach, with the Narzo series thriving in ecommerce, while the remaining portfolio dominated offline channels.
The premium segment witnessed robust growth, fueled by easy financing options, incentive schemes for retailers, and rising disposable income. Apple seized the opportunity during the Diwali celebrations in November 2023, pushing its latest iPhone 15 series and contributing over 50 per cent to its Q4 shipments. Samsung’s aggressive retail targets for the premium Galaxy S23 series and the launch of the Galaxy S23 FE in Q4 also propelled its shipments, thanks to compelling banking deals.
“The premium segment witnessed robust growth, thanks to easy financing options, incentive schemes for retailers and rising disposable income,” said Sanyam Chaurasia, Senior Analyst at Canalys.
As the Indian smartphone market enters 2024, deemed the ‘Election Year,’ vendors are optimistic due to improved consumer market indicators, manageable inflation, steady interest rates, and a clear expectation of a stable government.
Canalys predicts mid-single-digit growth for the market in 2024, driven by the affordability of 5G devices and the replacement cycle post-pandemic. However, the rising bill of materials costs poses a significant challenge for vendors in the upcoming year.
