India Smartphone Market Stabilises In 2Q23; Vivo Reclaims Second Position: Canalys

New Delhi: India's smartphone market has stabilized after a three-quarter decline in Q2 2023 with shipments of 36.1M units, a modest 1% year-on-year decline but a sharp 18% increase sequentially, while inventory levels suppliers have improved, reports Canalys. on Wednesday due to favorable economic conditions.

Samsung maintained its leading market position with 18% share (by volume) despite a slight 1% year-on-year decline in Q2 2023, while Vivo's share fell from 16% to 18%, helping it regain second place. shop. Sort by research firm.

The market share of Xiaomi, ranked third, fell from 19% to 15%, while its shipments fell 22% in the quarter from April to June 2023. The market share of Realme, ranked fourth, fell from 17% to 12%, while its shipments fell by as much as 29%. %. Oppo ranks fifth with a 10% market share, according to Canalys.

“Smartphone vendors are accustomed to a dynamic business environment with an eye on long-term sustainability,” said Canalys analyst Sanyam Chaurasia. Brands are strengthening their market position by collaborating more with the Indian chain ecosystem. Merchants are investing in local suppliers, supporting retailers and aligned with the government's vision."

Chaurasia added that the trend of consumers to shop offline in the mass market and high-end segments encourages retailers to implement offline strategies.

“Retailers have worked effectively with distribution channels to manage the current inventory load, making room for new models before the start of the holiday season next quarter,” Chaurasia added. “Demand for offline consumers, both in rural and urban areas, has increased due to the strong preference of retail consumers. On the other hand, online demand has been volatile and driven primarily by urban consumers during periods of e-commerce sales.”

However, retailers are now also looking for a better balance between offline and online channels, he said.

“After a few difficult quarters ago, the market finally picked up momentum in the second half,” Chaurasia said. “In the second quarter, there was a slight improvement in macroeconomic indicators with the growth of industrial production and lower inflation. However, the uncertainty associated with the rainy season will continue to threaten consumer demand.”

The government is looking to boost consumer confidence ahead of the next national elections in 2024, according to a Canalys analyst.

As a result, the research firm expects more favorable demand conditions in the second half of 2023 thanks to improved consumer spending over the holiday season.

With India hosting the Cricket World Cup in October 2023, operators will focus on promoting their 5G services. Smartphone brands are committed to expanding by promoting the affordable 5G portfolio at this event,” Chaurasia said.