India’s smartphone shipments have declined for the fourth consecutive quarter. According to research from Counterpoint’s Monthly India Smartphone Tracker, smartphone shipment declined 3 per cent year-over-year YoY in the second quarter of 2023 (April-June). However, the silver lining amid all this is that the magnitude of the decline has reduced significantly. It has come down to 3 per cent in Q2 from 19 per cent in Q1.

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According to the report, base effect, pent-up demand and improving macroeconomic conditions helped the market close at less than the expected decline. With festive seasons around the corner, there are expectations that this pattern will come to an end. 

Shilpi Jain, Senior Research Analyst, Counterpoint, feels that the demand would pick up this festive season. According to Jain, there are various factors that will contribute towards it. 

"Throughout the year we have witnessed slow demand. However, now we are seeing that India is sitting on huge installed bases. They are due to upgrade. Also, brands are launching new smartphones before the festive season. Also, consumers are looking for 5G devices and we are seeing several new launches. 5G is going to be the main growth driver this festive season," Shilpi Jain told Zee Business.

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Another interesting fact is the premium segment has been immune from all these macroeconomic conditions, slow down in the economy and inflation. 

Shilpi Jain feels that the premium segment has been growing steadily and at a faster pace because of good financing schemes, buy now, pay later offers and no-cost EMIs.

"So we believe that the upcoming festive season would be better than last year because there is plenty of demand as well. Those consumers who did not upgrade last year or this year due to these macroeconomic conditions will also buy new devices. Many of them are waiting for the festive season to avail some attractive offers," she said. 

5G was launched by Prime Minister Narendra Modi in October last year. Though the roll-out had started, it is only recently that it has picked pace. With 5G connectivity now available in so many cities, the demand for 5G phones is bound to grow. All these factors are bound to drive the demand for smartphones in the coming days.