Telecom market sees 36% value growth in offline retail in 2022

Despite a 9.7% global decline in telecom revenue in 2022, India displayed a double-digit revenue growth

March 14, 2023

The Indian telecom market is expected to have stable, value-driven growth in 2023

Tier 3 and lower towns have accounted for 50% of smartphone sales units and 21% of wearables in 2022

The growth of the telecom market will be driven by premium handsets, 5G, and wearable devices

The smartphone category, including phablets, saw a 15% increase in demand from January to December 2022 compared to the previous year

The Indian telecom market experienced a 36% increase in value in offline retail in 2022 and is expected to have stable, value-driven growth in 2023, according to a report by market intelligence firm GfK. 

Despite a 9.7% global decline in telecom revenue in 2022, India was a positive outlier with double-digit revenue growth, particularly in smartphones, core wearables, and truly wireless (TWS) mobile headsets.

Experts said that while top-tier towns still dominate sales, consumer needs and changing lifestyles are driving higher adoption of smart devices in Tier 3 and lower towns, accounting for 50% of smartphone sales units and 21% of wearables in 2022. The growth of the telecom market will be driven by premium handsets, 5G, and wearable devices, they added.

The smartphone category, including phablets, saw a 15% increase in demand from January to December 2022 compared to the previous year, with an average selling price of INR 17,032, a 17% increase from 2021. Premium devices and 5G models also experienced an increase in demand, with 5G models accounting for 44% of revenue in 2022, and devices with a storage capacity of more than 256GB growing 122% in revenue.

The wearables segment also showed growth in India, with a 127% increase in value in offline retail compared to the previous year.

Source: Economic Times

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