Which brand is the number one smartphone maker in India at present? The answer is quite simply too close to call. For a significant period of time, contests between Xiaomi and Samsung headlined this space. Now, the battle is between Samsung and Vivo, with the latter being on a sustained upward trajectory.
As focus remains on market share, two very distinct trends are emerging: first, India’s smartphone market is on a decline, and whether that is temporary remains to be seen. Secondly, Indians are now more inclined towards premium phones.
According to IDC, or International Data Corporation, 64 million smartphones were shipped in India in the first half of 2023, a decline of 10% compared with H1 2022. Specifically, in Q2 2023, the 34 million smartphones shipped represent a 10% increase over Q1 2023, but that is still decline of 3% compared with Q2 2022.
CyberMedia Research (CMR) found India’s Q2 shipments declined 6% compared with the year-ago quarter.
More expensive phones, and 5G in vogue
The data by these analysts also shows that Indians are spending more on smartphones, a trend reflected in Android phone makers such as Samsung, OnePlus, Vivo, Oppo and Nothing focusing on premium price points.
“Consumers are opting for premium offerings, driven by easy and affordable financing options. IDC expects this growth momentum to continue in the upcoming months in 2023,” said Upasana Joshi, research manager, Client Devices at IDC India. The average selling price of a smartphone in India is now $241 (around ₹19,930), a 13% increase year-on-year.
Phone makers are in themselves embracing financing options to upsell, such as Samsung’s Samsung Finance+ that disburses easy loans for new phones. Among the two companies that clocked the largest jumps in sales are Apple and OnePlus.
Apple clocked a 61.1% growth year-on-year (to reach a 5.5% share). The tech giant officially sells five iPhone lines in India, including the iPhone 14 Pro and iPhone 12, with the iPhone SE ( ₹49,900 onwards) sporting the lowest price tag.
OnePlus also recorded a 61.1% annual growth rate, garnering 7.2% share. It recently strengthened its flagship offering, headlined by the OnePlus 11.
Phone makers also often tie-up with banks for cashback and up-front discounts on instruments such as credit cards and EMI, or equated monthly instalment, transactions.
Another sub-category logging growth is of 5G phone. “Despite an overall decline in smartphone shipments, the 5G smartphone segment showed promising performance capturing 47% market share; up from 31% in Q2 2022,” says Shipra Sinha, analyst for Industry Intelligence Group at CyberMedia Research.
Research firm Counterpoint says that in Q2 2023, 5G smartphone shipments in India crossed the 100-million cumulative mark as 5G upgrades have picked up pace.
Who really ships the most phones?
There is split opinion. Research firms IDC and TechInsights Inc in their reports peg Vivo as having done enough to usurp Samsung’s lead in Q2 2023. In IDC’s Worldwide Quarterly Mobile Phone Tracker estimates, Vivo had (16% share) ahead of Samsung (15.7%). TechInsights’ data has Vivo (17.5% share), Xiaomi (16%) and Samsung (15.5%) making up the lead troika.
Estimates by CMR and Counterpoint, however, suggest Samsung has held on to its lead, though it has narrowed. CMR’s India Mobile Handset Market Review Report suggested Samsung (18%) leads Vivo (15%). These numbers remain similar to Q2 2022. According to Counterpoint, Samsung (18%) and Vivo (17%) were locked in close contest in that quarter.
“Samsung remained at the top position for the third consecutive quarter with an 18% market share. Aggressive offers on the Z Flip3 and S21 FE, and high demand for the latest premium A-series and F-series devices drove this growth,” said Shubham Singh, research analyst at Counterpoint.
Xiaomi’s long road to recovery
The magnitude of task at hand for Xiaomi, cannot be missed. The smartphone maker, which has traded market share lead with Samsung quarter after quarter since 2018, is in the midst of a rebuild after struggles in 2022 saw its numbers slip.
Xiaomi’s lead was such that it still held second position through last year, despite slowing down. According to CMR, Xiaomi’s 15% market share now represents a 5% reduction year-on-year. Counterpoint said the company has now had to relinquish second position to Vivo. IDC even pegged Xiaomi in fifth position, behind Oppo and Realme.
“We knew very clearly walking into Q4 2022 that we will lose the number one position. It was a conscious call. We have prioritised sustainability and profitability,” Muralikrishnan B, president of Xiaomi India, told HT earlier.
The Redmi 12 5G, which has now gone on sale with prices starting ₹10,999 is crucial to this recovery process – one of the most affordable 5G phones in India, at this time. This is in stark contrast to the fortunes of Xiaomi’s sub-brand Poco. IDC analysis suggested they recorded a 76.5% growth year-on-year.
“Poco’s relentless pursuit of innovation, coupled with a customer-centric approach, has resulted in a diverse portfolio of feature-rich smartphones that cater to a broad spectrum of users,” said Himanshu Tandon, country head for Poco India. Their latest phone, M6 Pro, will start a sibling rivalry with the Redmi 12 5G. On the agenda are similar specs with 5G, while sporting similar price tags.
