Indian smartphone shipments fall 10% YoY in CY22 to 144 mn, Q4 sees 27% dip

Dwindling consumer demand due to high inflation remained a challenge all year round despite improved supply. The ASP (average selling price) hit a record $224, up 18% YoY

The Indian smartphone market exited 2022 with a 10 per cent year-on-year decline in smartphone shipments, at 144 million units–the lowest since 2019. Further, shipments in the fourth quarter (Q4) of CY2022 dipped 27 per cent YoY to 30 million units, according to the International Data Corporation’s Quarterly Mobile Phone Tracker report.

Despite multiple price discounts and channel schemes, high inventory levels post Diwali restricted new shipments.

“The entry-level segment (sub-$150) shrank to 46 per cent of the market, from 54 per cent a year ago. The dearth of new launches in this critical mass segment was a barrier for new smartphone users, limiting the overall market’s growth,” said Upasana Joshi, Research Manager, Client Devices, IDC India.

Dwindling consumer demand due to high inflation remained a challenge all year round despite the improved supply situation. The ASP (average selling price) hit a record $224, up 18 per cent YoY in 2022.

“We should expect a rather difficult and elongated recovery for the smartphone market, as worries around rising prices and excess inventories will remain a concern through at least the first half of 2023. Vendors and channel partners need to rethink their plans for their entry-level portfolios, driving 5G device affordability with attractive trade-in programs and financing schemes, " says Navkendar Singh, Associate Vice President, Devices Research, IDC.

POINTERS:

Shipments via online channels dipped 6 per cent YoY, though with a record-high share of 53 per cent. Offline channel shipments declined by 15 per cent YoY.

50 million 5G smartphones were shipped during the year, with an ASP of $395 in 2022, down from $431 in 2021. With more affordable 5G launches likely in 2023, 5G devices should account for about 60 per cent of shipments in 2023.

The mid-premium and premium price segments of $300-500 and $500-plus grew 20 per cent and 55 per cent, respectively, while the sub-$300 segment declined by 15 per cent.

In the $500-plus segment, Apple maintained its lead with a 60 per cent share (iPhone 13 being the third most shipped device in 2022), followed by Samsung with a 21 per cent share.