Indian smartphone market sees 20% growth in Q4 2023 with Samsung in the lead

According to Canalys, for the entire year of 2023, India's smartphone market demonstrated stability, with overall shipments reaching 148.6 million units, experiencing only a minor drop of 2%.

“The market demonstrated resilience, thanks to improved consumer confidence in the latter part of the year, and despite vendors facing inventory challenges, minimal inflation improvements and fluctuating demand for most of the year,” the firm said in its report.

“In 2023, growing investment in mainline retail space proved beneficial not only for vendors but also allowed the overall market to stabilise,” said Sanyam Chaurasia, Senior Analyst at Canalys.

Brands like Xiaomi and realme reportedly witnessed their highest offline shipment shares in Q4. Xiaomi's Redmi 12 5G and recently launched Redmi 13C series, each surpassing a million shipments, contributed to its highest offline channel share quarter, Canalys added. Similarly, realme achieved equal channel contribution, with the Narzo series dominating e-commerce and the remaining portfolio excelling in offline channels.

The premium segment experienced also robust growth, attributed to easy financing options, incentive schemes for retailers, and rising disposable income. Apple, leveraging the festive sales during Diwali in November 2023, pushed its latest iPhone 15 series, contributing over 50% to its shipments in Q4. Discounts on previous-generation models, iPhone 14 and iPhone 13, during online sales further propelled Apple's record shipments, capturing a 7% market share in India.

Samsung, setting aggressive retail targets for its premium Galaxy S23 series, and the successful launch of the Galaxy S23 FE in Q4, contributed significantly to its premium segment growth, Canalys said.

As the industry enters 2024, labelled as an "Election Year," Chaurasia expressed optimism for the consumer market with manageable inflation, steady interest rates, and clear visibility of a stable government to come into power.

Canalys anticipates the Indian smartphone market to grow by mid-single digits in 2024, driven by affordable 5G and the replacement cycle post-pandemic. However, vendors face the challenge of managing rising bill of materials costs, making cost-effective strategies crucial for sustained growth.