MediaTek Grabs 50% Share as Qualcomm Share Dips to 25% in India Smartphone Market

IDC today revealed that MediaTek-powered smartphones accounted for 50 percent of shipments in Indian smartphone market in 2023, while Qualcomm’s share declined to 25 percent.
India smartphone brands 2023India’s smartphone market shipped 146 million smartphones, registering 1 percent year-over-year (YoY) growth in 2023, IDC report said.

The latter half of the year saw a significant rebound, with a robust 11 percent growth in the second half, compensating for a sharp 10 percent decline in the first half. The fourth quarter of 2023 recorded 26 percent YoY growth, with shipments reaching 37 million units, primarily fueled by demand following the launch of several new smartphone models.

However, consumer demand remained subdued, leading to excess inventory levels across channels, despite efforts by vendors to implement price corrections and promotional schemes. This challenging landscape was reflected in the average selling price (ASP), which reached a record high of US$255, marking a 14 percent increase in 2023.

Notably, this marks the third consecutive year of double-digit ASP growth, hindering a swift recovery in the smartphone market. The surge in ASP can be attributed to the growing share of premium-segment smartphones (US$600+) and a rapid uptake in 5G shipments, which accounted for a record 55 percent share.

Upasana Joshi, Research Manager, Client Devices, IDC India, commented, “Most brands opted to reduce prices and offer additional channel margins in the last quarter to manage inventory levels following a post-festive cyclic dip. This will likely result in a tepid start to 2024 with cautious stocking by channels.”

Key Highlights for 2023:

Shipments to online channels witnessed a 6 percent decline, with its share dropping to 49 percent in 2023 from 53 percent in the previous year. Conversely, offline channel shipments grew by 8 percent YoY, driven by vendors strengthening their retail presence and expanding into smaller towns and cities.

Price Segment Details:

The entry-level segment (sub-US$100) saw a 12 percent YoY growth, capturing a 20 percent share of the market. Xiaomi continued its lead, with POCO and Samsung emerging in the top brand list.

Shipments to the mass budget (US$100<US$200) segment declined, with its share dropping to 44 percent from 51 percent, driven by vivo, Realme, and Samsung.

The entry-premium (US$200<US$400) segment remained stable, accounting for a 21 percent share, with vivo and OnePlus leading the segment.

The mid-premium segment (US$400<US$600) witnessed a 27 percent YoY growth, reaching a 5 percent share, led by OnePlus, Samsung, and vivo.

The premium segment (US$600<US$800) and super-premium segment (US$800+) experienced significant growth, with the iPhone and Galaxy series leading the charge.

A total of 79 million 5G smartphones were shipped in 2023, with the mass budget segment witnessing a significant increase in share.

Nearly a million shipments of foldable phones were recorded, with Samsung leading the market despite facing increased competition.

Brand Performance:
Top 10 smartphone brands in India in 2023Apple and Samsung remained dominant, with Apple’s ASP reaching a record high of US$940, driven by previous generation iPhone models and local manufacturing initiatives.

Vivo climbed to the second position, registering growth in shipments and ASP.

Realme maintained its third position, overcoming initial challenges with affordable launches.

Feature phones experienced a resurgence, with 61 million units shipped, primarily driven by the entry of Reliance Jio’s new 4G feature phone.

Navkendar Singh, AVP, Client Devices Research, IDC India, concluded, “The road to recovery for smartphones in 2024 looks strained and elongated, as worries around income, inflationary stress, price increases, and inventories remain. Efforts, especially at entry-level price points, will be crucial to fuel organic growth in the coming years.”