India smartphone market shows signs of recovery: Canalys

India’s smartphone market experienced a slight recovery in the second quarter of 2023, with shipments reaching 36.1 million units, marking a modest 1 percent decline, according to the latest research report by Canalys. This upturn comes after three consecutive quarters of decline, signaling a positive trend for the industry.
Q2 2023 India smartphone business growthThe 18 percent sequential growth in the market during Q2 2023 can be attributed to vendors improving their inventory levels, benefiting from a moderately favorable business environment. Notably, offline shopping remained popular among mass-market and premium segment consumers, prompting vendors to implement effective offline strategies, Canalys research report said.

Samsung maintained its leading position in the market during Q2 2023, with an impressive 18 percent market share and shipping 6.6 million units. Vivo reclaimed the second spot, shipping 6.4 million units, while Xiaomi secured the third position with 5.4 million units shipped. Realme and OPPO followed closely, shipping 4.3 million and 3.7 million units, respectively.

Canalys Analyst, Sanyam Chaurasia, attributed the success of these brands to their collaborations with the Indian channel ecosystem. The vendors’ focus on investing in local suppliers, nurturing retailers, and aligning with the government’s vision has significantly contributed to their cemented position in the market.
Q2 2023 India smartphone shareOffline expansion efforts were evident across various brands.

Apple opened offline stores in India to address inventory issues, provide exclusive deals, and enhance the customer experience.

Samsung also expanded its flagship stores throughout the country.

OnePlus adopted a creative approach with its pop-up stores in multiple tier-1 and tier-2 cities.

Transsion sub-brands like Infinix achieved remarkable success through the e-commerce channel, while Tecno and iTel targeted offline channels in lower-tier cities.

In terms of product offerings, OnePlus leveraged its Nord CE 3 Lite 5G to achieve robust growth and establish a strong foothold in offline channels in smaller cities. Xiaomi and realme also gained momentum in Q2 2023, further enhancing their market positions.

Looking ahead, Canalys predicts a more favorable demand environment in the second half of 2023, fueled by improved consumer spending during the festive season. The upcoming Cricket World Cup in October 2023 will see operators promoting their 5G services, and smartphone brands are expected to push their affordable 5G portfolio during this event. These initiatives are part of the government’s efforts to boost consumer confidence ahead of the National Elections in 2024.

Overall, the India smartphone market shows promising signs of growth and resilience, and vendors are actively adapting their strategies to cater to the evolving consumer preferences and demands.

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