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A man takes a picture with a Samsung phone which has several cameras in Old Delhi, India on October 28, 2022.
Nasser Kachro Norphoto | Getty Images
India’s smartphone market stabilized in the second quarter with 36.1 million units shipped, according to a report by Canalys.
That number is down 1% from last year, much better than the 20% drop in the first quarter. Shipments also decreased by 27% and 6% in the fourth and third quarters of 2022, respectively.
“With a turbulent few quarters behind us, the market is finally gaining momentum heading into the second half,” said Sanyam Chaurasia, an analyst at Canalys. “During the second quarter, there was a slight improvement in the overall indicators, with an increase in industrial production and a decrease in inflation rates.”
Compared to the prior quarter, the market grew 18% as inventory levels improved, which Canalys attributed to a better business environment.
“Smartphone vendors are adapting to a dynamic business environment, and are focused on ensuring long-term sustainability,” Chaurasia said.
samsung It continued to dominate in the second quarter, taking about 18% of the market share with 6.6 million shipments, according to Canalys. Vivo closely followed with 6.4 million phones shipped, while Xiaomi ranked third with 5.4 million shipped.
India is already the second largest smartphone market in the world, and is likely to add 300 million new internet users, Varun Mishra, senior analyst at Counterpoint Research, previously told CNBC.
Chaurasia said he expects the companies to promote their affordable 5G portfolios during the Cricket World Cup in India in October.
He noted that risks such as uncertainty associated with the monsoon season could dampen demand. But Chaurasia said the government wants to boost demand ahead of next year’s national elections.
Physical sales are still important
Canalys noted that consumers in India tend to prefer buying phones offline, and this has shaped the country’s retail strategies.
in April, apple He opened two retail stores in Delhi and Mumbai. Samsung announced in the same month that it would create 15 premium stores Across India by the end of the year in major cities like Delhi, Mumbai and Chennai.
“Demand from offline consumers has risen, both in rural and urban areas, due to strong retail consumer preference,” Chaurasia said.
“On the other hand, online demand was inconsistent and was mainly driven by urban consumers during periods of e-commerce sales,” he said, adding that sellers are striving for a better balance between offline and online sales.
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