Smartphone Sales Experience 10% Decline in Q1, Marking Largest Drop in Three Years
NEW DELHI: India’s smartphone shipments fell by 10% year-on-year in the June quarter, marking the steepest decline in three years. The mass-market segment was particularly hard hit, with sales of smartphones priced below Rs 15,000 plummeting by 45%. This downturn has significantly affected Chinese smartphone brands, which rely heavily on entry- and mid-range devices, resulting in their lowest combined market share for an April-June quarter since 2020, according to Counterpoint Research.
Vivo maintained its lead in the market with a 17.8% share, despite experiencing a double-digit decline in sales. Oppo secured third place with a 13.6% share, while Xiaomi, including Poco, dropped to fourth with a combined share of 13.4%. Realme followed closely in fifth place with a 10% share. Counterpoint noted that both Xiaomi and Realme faced declining sales due to repeated price increases in their affordable portfolios, which weakened consumer demand. In contrast, Oppo benefited from stronger demand for devices priced above Rs 20,000.
The research firm attributed the overall slowdown to record-high memory prices, which have compelled manufacturers to raise smartphone prices multiple times this year. By the end of the June quarter, average smartphone prices had risen approximately 15%. Inflationary pressures and reduced discretionary spending have led consumers to postpone upgrades. Memory prices have surged nearly four-fold since September 2022, significantly increasing manufacturing costs and forcing brands to pass these costs onto consumers.
To counteract the slowdown, several brands have expanded their 4G offerings in the affordable segment, targeting value-conscious buyers who are prioritizing lower prices over 5G connectivity until component costs stabilize. Meanwhile, the premium market has shown resilience, with smartphones priced above Rs 45,000 remaining stable. Financing options, including NBFC and credit card EMIs, have made expensive devices more accessible, accounting for over half of mainline smartphone sales during the quarter.
Samsung was the only top-five smartphone brand to report shipment growth, increasing by 2% year-on-year and narrowing the gap with Vivo, raising its market share to 17.6%. Apple’s shipments declined by 3% year-on-year, with its market share at 7%. Strong demand for the iPhone 17 series was tempered by supply constraints and inventory shortages across both online and offline channels.
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