Indian smartphone market recovers in Q2 FY24

The shipments reached 36.1 million units, representing a marginal decline of 1% compared to the previous year

July 20, 2023

On a sequential basis, smartphone shipments grew at 18% due to improved inventory levels in a moderately favourable business environment

The market's recovery in Q2 FY24 can be attributed to the collaborative efforts of smartphone brands with sales channels to clear existing inventory backlogs

The offline retail space experienced a surge in consumer demand, particularly in urban and rural areas

Samsung remained the leader in terms of market share, followed closely by Vivo and Xiaomi

The Indian smartphone market showed signs of stability in the second quarter of 2023, with shipments reaching 36.1 million units, representing a marginal decline of 1% compared to the previous year, according to market analysis firm Canalys. 

This slight downturn indicated a potential recovery after experiencing three consecutive quarters of shipment decline. However, on a sequential basis, smartphone shipments grew by 18% due to improved inventory levels in a moderately favourable business environment.

The market’s recovery in Q2 FY24 can be attributed to the collaborative efforts of smartphone brands with sales channels to clear existing inventory backlogs. This initiative aimed to make space for new models in anticipation of the upcoming festive season in the following quarter. Notably, consumer preference for offline shopping in mass-market and premium segments significantly drove vendors to implement effective offline strategies.

The offline retail space experienced a surge in consumer demand, particularly in urban and rural areas. At the same time, online channels witnessed inconsistent demand, primarily driven by urban consumers during e-commerce sales periods.

Samsung remained the leader in terms of market share, followed closely by Vivo and Xiaomi. Realme and Oppo (excluding OnePlus) rounded off the top five brands.

Looking ahead, Canalys predicts a more favourable demand environment in the second half of 2023, supported by improved consumer spending and the focus on 5G services, especially with the Cricket World Cup set to take place in India in October. Smartphone brands are expected to capitalize on this trend by pushing their affordable 5G portfolios during the event.

Additionally, brands’ continued collaboration with the Indian channel ecosystem, investment in local suppliers, and alignment with the government’s vision will play a crucial role in cementing their positions in the market and driving further growth.

Source: Economic Times

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