The Indian smartphone market has shown signs of recovery with shipments stabilizing at 36.1 million units in Q2 2023, marking a modest decline of 1%, according to research by Canalys. This comes as a positive development after three consecutive quarters of decline. On a sequential basis, the market experienced an 18% growth as vendors improved their inventory levels, benefiting from a moderately favorable business environment.
Samsung maintained its position as the leading vendor in the market during Q2 2023, capturing an 18% market share and shipping 6.6 million units. Following closely, vivo reclaimed the second spot, shipping 6.4 million units after a quarter. Xiaomi secured the third position, shipping 5.4 million units, while realme and OPPO (excluding OnePlus) completed the top five with shipments of 4.3 million and 3.7 million units, respectively.
Analyst Sanyam Chaurasia from Canalys highlighted how smartphone vendors are adapting to the dynamic business environment and focusing on long-term sustainability. Brands are solidifying their market position by further collaborating with the Indian channel ecosystem. This involves investing in local suppliers, nurturing retailers, and aligning with the government’s vision.
The report also emphasizes the significance of offline shopping for consumers in both the mass-market and premium segments, driving vendors to implement effective offline strategies. For instance, Apple and Samsung have been expanding their offline presence through new stores, while OnePlus has adopted a creative approach with pop-up stores in tier-1 and tier-2 cities.
Chaurasia noted that vendors effectively collaborated with channels to address existing inventory backlogs, making way for new models ahead of the upcoming festive season. Offline consumer demand has surged, especially in rural and urban areas, while online demand has been inconsistent, primarily driven by urban consumers during e-commerce sales periods.
However, smartphone brands are now seeking a better balance between offline and online channels. For example, Transsion sub-brands like Infinix found success in the e-commerce channel, while Tecno and iTel are focusing on offline channels in lower-tier cities. OnePlus achieved strong growth through its Nord CE 3 Lite 5G model and has established a strong foothold in offline channels in smaller cities. Xiaomi and realme regained momentum in Q2 2023, with Xiaomi’s Redmi A2 and 12C driving volumes, and realme focusing on offline channels, particularly with the C55 model.
| Indian smartphone shipments and annual growth Canalys Smartphone Market Pulse: Q2 2023 | |||||
| Vendor | Q2 2023 shipments (million) | Q2 2023 market share | Q2 2022 shipments (million) | Q2 2022 market share | Annual growth |
| Samsung | 6.6 | 18% | 6.7 | 18% | -1% |
| vivo | 6.4 | 18% | 6.0 | 16% | 7% |
| Xiaomi | 5.4 | 15% | 7.0 | 19% | -22% |
| realme | 4.3 | 12% | 6.1 | 17% | -29% |
| OPPO | 3.7 | 10% | 4.0 | 11% | -7% |
| Others | 9.7 | 27% | 6.6 | 18% | 44% |
| Total | 36.1 | 100% | 36.4 | 100% | -1% |
| Note: Xiaomi estimates include sub-brand POCO. OPPO excludes OnePlus. | |||||
Looking ahead, Canalys predicts a more favorable demand environment in the second half of 2023 due to improved consumer spending during the festive season. However, uncertainties related to the monsoon season could continue to pose risks to consumer demand. The upcoming Cricket World Cup in October 2023 will see operators promoting their 5G services, and smartphone brands will strive to gain momentum by pushing their affordable 5G portfolio during this event.
