Indian Smartphone Market Declined: Xiaomi, Realme Biggest Losers: 5G Phones Shining Though

The Indian smartphone market may be one of the most active and vibrant in the world. However, nearly every leading manufacturer, including Samsung, Xiaomi, Vivo, and others, is concerned about the declining sales of smartphones.

According to CyberMedia Research (CMR)'s "India Mobile Handset Market Review Report" for Q2 2023, the sale of smartphones declined by around 6 percent on a Year-on-Year basis. This is a highly concerning percentage and trend. However, the outlook isn't all gloomy for manufacturers and could be quite positive for smartphone buyers.

4G Feature Phone Market Registers Astounding Growth In India

Smartphone shipments in India declined by about 6 percent on a Year-on-Year basis. The entire mobile phone market declined by 2 percent. The difference is due to the decline in the smartphone market but the uptick in the sale of feature phones.

The feature phone market recorded a growth of 9 percent on a Year-on-Year basis. Despite the arrival and the availability of 5G networks in India, the 2G feature phone shipments remained stable.

Surprisingly, 4G "feature phone" shipments recorded a remarkable 108 percent YoY growth. Some of the most popular 4G feature phones include the Nokia 8000 4G, Nokia 106 4G, and Itel Magic X Pro. With devices from India's leading telecom company Jio expected to reach retail markets, the 4G feature phone segment is expected to grow further, the report indicated.

Smartphone Market Declined But Manufacturers Remain Optimistic

Coming to the smartphone market, manufacturers including Samsung, Vivo, and Xiaomi continue to dominate. However, not only these market leaders, but others such as Realme, and Oppo too are concerned about the overall decline in sales of smartphones.

The Value-for-money smartphone segment, which includes smartphones priced between ₹7000 and ₹25,000 command the lion's share, contributed 72 percent of sales. However, this segment witnessed the steepest 16 percent YoY decline.

The Affordable smartphone segment, which includes smartphones priced below ₹7000, recorded significant 51 percent YoY growth. Even the "Premium" segment comprising smartphones priced between ₹25,000 and ₹50,000 registered 9 percent YoY growth.

The biggest surprise for the research team was the record growth registered by Super-premium (₹50,000 to ₹1,00,000) and Uber-premium (smartphones costing more than ₹1,00,000 segments. Even though these segments are rather small, they registered a remarkable growth of 95 percent and 133 percent YoY, respectively.

Analysts claim the slight decrease in smartphone shipments is an indicator of e-commerce platforms, distributors, and resellers clearing their stock before the festive season. This is indicated by the growing demand for 5G-enabled smartphones, which now make up a whopping 47 percent of the mobile phone market.