Smartphone sales have been declining in India, with the entry-level and mid-range segments the hardest hit. In the first half of 2023, total sales fell below the 50-million unit mark. Why are sales declining and what can we expect for the rest of the year? Mint found it.
Smartphone sales have been declining in India, with the entry-level and mid-range segments the hardest hit. In the first half of 2023, total sales fell below the 50-million unit mark. Why are sales declining and what can we expect for the rest of the year? Mint found it.
What is the current trend in smartphone sales?
Annual smartphone sales in India are expected to decline by 6 percent to 151.6 million units in 2022. The trend continued—in the first half of 2023, shipments fell 20% in the first quarter, and another 1% in the second. With this, smartphone shipments from India have declined for four consecutive quarters – the worst in more than 10 years. In the year The 162 million units shipped in 2021 is far from what was recorded in 2020 as the market quickly recovered from the stagnation caused by Covid-19.
What is the current trend in smartphone sales?
Annual smartphone sales in India are expected to decline by 6 percent to 151.6 million units in 2022. The trend continued—in the first half of 2023, shipments fell 20% in the first quarter, and another 1% in the second. With this, smartphone shipments from India have declined for four consecutive quarters – the worst in more than 10 years. In the year The 162 million units shipped in 2021 is far from what was recorded in 2020 as the market quickly recovered from the stagnation caused by Covid-19.
Is the board declining?
The entry-level and mid-range segments of the market, covering phones priced between Rs 5,000 and Rs 30,000, form the bulk of the market by volume. And this is the category that fell the most. The Rs 10,000 segment is estimated to have declined by 12 percent in the first half of 2023, while the Rs 10,000-30,000 segment was down fifth. Driven by increasing 5G adoption, the premium segment is growing rapidly at over 60 percent. The introduction of 5G smartphones like Jio, which may launch around Diwali at prices below Rs 10,000, could reverse the trend.
Is the board declining?
The entry-level and mid-range segments of the market, covering phones priced between Rs 5,000 and Rs 30,000, form the bulk of the market by volume. And this is the category that fell the most. The Rs 10,000 segment is estimated to have declined by 12 percent in the first half of 2023, while the Rs 10,000-30,000 segment was down fifth. Driven by increasing 5G adoption, the premium segment is growing rapidly at over 60 percent. The introduction of 5G smartphones like Jio, which may launch around Diwali at prices below Rs 10,000, could reverse the trend.
What are the main reasons for sluggish demand?
An uncertain macroeconomic environment with high inflation, rising unemployment, rising wages and a K-shaped economic recovery has forced consumers to hold onto their phones more than ever. Inventory building has impacted Q1 shipments and increased sales of refurbished phones are beginning to impact sales of new phones as well.
What are the main reasons for sluggish demand?
An uncertain macroeconomic environment with high inflation, rising unemployment, rising wages and a K-shaped economic recovery has forced consumers to hold onto their phones more than ever. Inventory building has impacted Q1 shipments and increased sales of refurbished phones are beginning to impact sales of new phones as well.
What is the forecast for the rest of the year?
The festival season starts next month. The industry has produced several startups. Affordable 5G devices are expected, which will expand the segment that is already seeing good demand. Companies are adapting to disruptions in offline stores. Another silver lining is that despite the small size, the average selling price of equipment has increased – the industry’s revenue and profitability have improved. For the full year, sales are likely to be 150 million units lower than the industry as a whole last year.
What is the forecast for the rest of the year?
The festival season starts next month. The industry has produced several startups. Affordable 5G devices are expected, which will expand the segment that is already seeing good demand. Companies are adapting to disruptions in offline stores. Another silver lining is that despite the small size, the average selling price of equipment has increased – the industry’s revenue and profitability have improved. For the full year, sales are likely to be 150 million units lower than the industry as a whole last year.
How is the industry doing globally?
It has posted sales declines for 24 consecutive months and eight consecutive quarters, including an 8 percent decline in the second quarter of this year. In the year Sales in 2022 stood at 1.2 billion units, the lowest since 2013. The markets that are struggling the most are the US, Western Europe and Japan. The trends are largely the same, with customers holding onto their phones longer. Premium phones are much more and green shoots have appeared like in India, indicating that the slowdown may only last a few more quarters.
How is the industry doing globally?
It has posted sales declines for 24 consecutive months and eight consecutive quarters, including an 8 percent decline in the second quarter of this year. In the year Sales in 2022 stood at 1.2 billion units, the lowest since 2013. The markets that are struggling the most are the US, Western Europe and Japan. The trends are largely the same, with customers holding onto their phones longer. Premium phones are much more and green shoots have appeared like in India, indicating that the slowdown may only last a few more quarters.
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