Smartphone shipments recover in the June quarter at 36.1 million units: Canalys
- IBEF
- July 20, 2023
According to Canalys, the Indian smartphone market stabilised at 36.1 million units in the three months that ended in June 2023.
After declining shipments for three straight quarters, the research company claimed that this indicates recovery. According to a survey from the market tracker, smartphone shipments increased 18% sequentially as inventory levels rose as a result of a somewhat favourable business environment. The second quarter saw smartphone brands collaborate with sales channels to liquidate existing inventory backlog, clearing space for new models before the festive season kicks in next quarter.
According to an Analyst at Canalys, Mr. Sanyam Chaurasia, consumer inclination toward offline shopping in the mass-market and premium segments is continuing to drive vendors to implement effective offline strategies. The market tracker mentioned the opening of two Apple flagship shops in India in April, the expansion of Samsung flagship stores across the nation, and OnePlus' innovative use of pop-up stores to reach several Tier-1 and Tier-2 towns as examples.
Canalys stated that consumer demand in the offline retail space, both in urban and rural areas, has surged due to a strong retail consumer preference, while demand from online channels has been inconsistent and primarily driven by urban consumers during e-commerce sales periods. As a result, brands are now striving to strike a better balance between offline and online channels. For instance, Transsion sub-brands such as Infinix achieved high volumes through e-commerce channels while Tecno and Itel focused on offline channels in lower-tier cities. OnePlus too achieved high growth after establishing a strong foothold in offline channels in smaller cities, while Xiaomi and Realme gained back momentum in the second quarter of 2023.
Mr. Sanyam Chaurasia further added that brands are cementing their position in the market by collaborating further with the Indian channel ecosystem by investing in local suppliers, nurturing retailers, and aligning with the government’s vision.
In Q2, Samsung maintained its lead in the market with 6.6 million devices shipped and an 18% market share. Vivo was closely behind in second place with 6.4 million units shipped and an 18% market share.
With 5.4 million units shipped, Xiaomi took third place. This represents a 22% year-over-year reduction, which is significantly smaller than the 38% decline Canalys noted in Q1 of 2023. Without OnePlus, Realme, and Oppo shipped 4.3 million and 3.7 million units, respectively, to round out the top five brands.
Mr. Sanyam Chaurasia also mentioned that with the troubled few quarters behind, the market has finally gained momentum heading into the second half of 2023. During Q2, there was a slight improvement in macro indicators, with increased manufacturing output and reduced inflation rates. However, uncertainties related to the monsoon season will continue to pose risks to consumer demand.
Due to increased consumer spending in the second half of 2023, Canalys forecasts a more positive demand environment. With India hosting the Cricket World Cup in October, operators are also anticipated to concentrate on 5G services, with smartphone manufacturers making use of the opportunity to promote their accessible 5G offerings.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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