Low single-digit growth likely for India's smartphone market in 2024

NEW DELHI: India's smartphone market shipped 146 million smartphones in 2023, with a nominal 1 percent growth (year-over-year), a new report said on Tuesday, indicating a flat to low single-digit annual growth for the smartphone market this year.

The second half of 2023 grew by 11 percent, compensating for the sharp 10 percent decline in the first half, according to the International Data Corporation (IDC).

"Most brands chose to reduce prices and offer additional channel margins in the last quarter to manage the inventory levels from post festive cyclic dip. This will give a lukewarm start to 2024 with cautious stocking by the channels," said Upasana Joshi, Research Manager, Client Devices, IDC India.

The average selling price (ASP) hit a record of $255, rising 14 percent YoY in 2023. This also marks the third consecutive year of double-digit ASP growth restricting smartphone market recovery.

The high ASP can be attributed to the increasing share of the premium segment ($600+) from 6 percent in 2022 to 10 percent in 2023, along with a rapid uptake in 5G shipments to a record 55 percent share.

Apple had a stellar year, finishing at 9 million units, despite having the highest ASP of $940.

This was led by previous-generation iPhone models and its push for local manufacturing. Its iPhone 13 and 14 were among the top 5 shipped models annually.

Samsung remained in the leadership position, with a record-high ASP of $338, although with a 5 percent shipment decline YoY. Its Galaxy A14 was the highest shipped device of 2023, according to the IDC.

Vivo (excluding iQOO) climbed to the second slot as shipments and ASPs grew by 8 percent and 9 percent, respectively. It was the only brand to register growth amongst the top five brands.

Realme, despite facing challenges in the beginning of the year, maintained its third position, led by affordable launches, the report mentioned.