New Delhi, Jan 31 – Apple emerged as the leader in the Indian smartphone market in terms of revenue share in 2023, surpassing Samsung for the first time, according to a report by market research firm Counterpoint Research. Despite flat smartphone shipments in India at 152 million units, Samsung and Chinese smartphone makers Vivo and Oppo managed to increase their market shares. Apple’s success can be attributed to its focus on the Indian market, with the brand shipping over 10 million units and capturing the top position in revenue. The opening of retail stores and increased emphasis on large-format retail contributed to the brand’s success.
Counterpoint Research also highlighted that Vivo followed Samsung with a 17% market share in terms of volume. The first half of 2023 proved challenging due to low demand and macroeconomic turbulence, leading to inventory build-up. However, the market saw recovery in the second half, supported by 5G upgrades and strong festive sales.
In terms of market share, Chinese smartphone player Xiaomi slipped to the third spot from its previous position as the leader in volume market share, while Vivo secured second place. Xiaomi’s market share fell from 20.3% in 2022 to 16.5% in 2023.
Despite the overall flat growth, the Indian smartphone market experienced a 25% YoY growth in the December 2023 quarter, driven by the premium segment and 5G upgrades. This growth was aided by the festive season, which saw the availability of steep discounts, easy financing schemes, and attractive promotions.
Counterpoint Research’s Senior Research Analyst, Shilpi Jain, stated that 5G smartphone shipment share crossed 52% in 2023, reflecting a 66% YoY growth. Jain predicted that the market would grow by 5% YoY in the upcoming year, driven by premiumization, the diffusion of 5G in lower price segments, and better macroeconomic conditions.
The report also revealed that Xiaomi held the top position in the Indian smartphone market in the December 2023 quarter, with an 18.3% share. Vivo followed closely with a 17.3% share, while Samsung secured 16.8% share. Realme and Oppo held 11.5% and 9.5% shares, respectively.
Smartphone manufacturers have been focusing on premium devices, which have contributed to their growth. The premium segment, consisting of smartphones priced above Rs 30,000, witnessed a significant 64% YoY growth in 2023. Consumers were encouraged to purchase higher-priced smartphones due to easy financing schemes. The report also revealed that one out of every three smartphones purchased in 2023 was through financing.
Counterpoint Research predicts that foldable smartphones will gain popularity in the premium segment, with shipments expected to surpass 1 million in 2024. Additionally, audio-video enhancements in smartphones, including features like Dolby Atmos, Dolby Vision, and Dolby Vision recording, are expected to become more common in 2024.
Furthermore, the report highlighted the growth of OnePlus, which experienced a 33% YoY growth in 2023, driven by offline expansion and a better product portfolio in the affordable premium segment. Transsion brands also saw a 31% YoY growth, mainly due to a hybrid channel strategy and a focus on bringing premium features to the affordable segment. Lava, the only home-grown smartphone brand, achieved a 36% growth. Google and Motorola grew by 111% and 13%, respectively.
In conclusion, while Apple captured the top spot in terms of revenue share in the Indian smartphone market in 2023, Samsung continued to dominate in terms of sales volume. Chinese smartphone players Vivo and Oppo also saw their market shares grow. The Indian smartphone market experienced growth in the premium segment and 5G upgrades in the December 2023 quarter. Counterpoint Research predicts further growth in the market in the coming year, driven by premiumization, 5G adoption in lower price bands, and improved economic conditions.
