01 December 2023

India’s smartphone market recorded a flat year-on-year (YoY) growth with 44 million units shipped in the third quarter of 2023. July and August showed single-digit growth due to early festive stocking, but September experienced the lowest shipments since 2019 due to dipping demand and high costs.

During the third quarter of the year, the average selling price (ASP) rose 5% quarter-on-quarter (QoQ) and 12% YoY to US$253. The significant increase in 5G smartphone shipments, reaching a record 58% market share with a total of 25 million units, can be attributed to the availability of more affordable and discounted 5G devices from suppliers. The 5G ASP fell 9% YoY to USD 357. The 5G shipments in Q3 2023 were primarily from the mass budget price group (USD 100 to USD 200), making up 52% of the total shipments.

“A swift uptake in affordable 5G smartphone shipments signals bullish sentiments and success of affordability efforts of the vendors. We should expect the previous generation of premium smartphone models to be in high demand this festive season, made affordable by various offers and upfront discounts across channels,” said Upasana Joshi, research manager, client devices, IDC India.

Despite a sluggish holiday season, the demand for smartphones has been driven by micro-financing and affordability initiatives. There remains a concern that, post-Diwali, demand might experience a decline, which could lead companies to grapple with excess inventory challenges, impacting the overall outlook for 2023, which is anticipated to be flat or show low single-digit growth.

In 2024, inexpensive 5G and foldable phones may hit the market, but inflation and longer refresh cycles may limit annual growth.