Inflation hurts smartphone buyers, shipments drop by 27% in Oct-Dec quarter
Inflation is hurting entry-level smartphone buyers as shipments of units priced below Rs 12,500 dropped by 46 per cent on a year-on-year basis. Among smartphone manufacturers, Xiaomi leads the market but the Chinese tech major has seen a huge dip in its shipment.
Amid high inflationary pressures, smartphones shipments in India plunged by over 27 per cent to 29.6 million in the October-December quarter of 2022, from 40.6 million in the year-ago period, a market research firm IDC said on Friday.
According to the report, dwindling consumer demand due to high inflation remained a challenge throughout the year despite the improved supply situation.
Smartphone shipments in the sub-USD 300 (about Rs 25,000) price segment declined by 15 per cent while mid-premium and premium price segments of USD 300-500 and over USD 500 (Rs 41,000) grew by 20 and 55 per cent, respectively during 2022.
The entry-level smartphones, below Rs 12,500 apiece, shrunk to 46 per cent from 54 per cent a year ago.
IDC India, Research Manager, Client Devices, Upasana Joshi said dearth of new launches in sub-USD 150 (about Rs 12,000) smartphone segment limited its growth.
According to IDC Associate Vice President, Devices Research, Navkendar Singh rising prices and excess inventories are expected to be a concern at least during the first half of the current year.
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"We should expect a rather difficult and elongated recovery for the smartphone market, as worries around rising prices and excess inventories will remain a concern at least in the first half of 2023.
"Vendors and channel partners need to rethink their plans for their entry-level portfolios, driving 5G device affordability with attractive trade-in programs and financing schemes," Singh said.
Xiaomi led the market during the quarter as well as on an annual basis with 18.6 and 21 per cent market share despite huge dip in its shipment volume on a year-over-year (YoY) basis.
Xiaomi shipments declined by 38.3 per cent during the December 2022 quarter and 25 per cent on an annual basis in 2022.
Apple maintained its lead in the premium segment with a 60 per cent share followed by Samsung with a 21 per cent share.
Samsung smartphones shipment declined by 22.6 per cent in the December 2022 quarter and 6.6 per cent during the year.
Samsung was second largest player during the quarter as well during the year with 18.4 per cent and 18.1 per cent share respectively in terms of smartphone shipments.
Overall, 201 million mobile phones were shipped in 2022, clocking a 12 per cent annual decline.
"Feature phone shipments stood at 57 million, a drop of 18 per cent YoY. Samsung, Xiaomi and Transsion were the leading companies in the total mobile phone market," the report said.
With PTI Inputs
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