Xiaomi and Realme 'Suffer' While Apple And Samsung Rise The market research firm said that this is the third consecutive quarterly decline in Indian smartphone shipments.
By Kavya Pillai
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The recent smartphone shipments in India have witnessed a decline of 19% year-on-year (YoY) in the first quarter of 2023 (Q1 2023) to reach over 31 million units. It is the highest-ever first-quarter decline seen by India's smartphone market. The market research firm said that this is the third consecutive quarterly decline in Indian smartphone shipments.
The decline is attributed to sluggish demand, high inventory build-up carried over from 2022, growing consumer preference for refurbished phones and a pessimistic channel view of the market. Samsung maintained its top position in the Indian smartphone market for the second consecutive quarter. Its market share remained at 20% in Q1 2023 as well.
Xiaomi experienced a significant drop from Q1 2022 as it fell to the third spot during Q1 2023. The Chinese company suffered a 44% YoY decline, which is the largest the brand has ever recorded, to grab a 16% share. The decline was due to weak demand in the sub-Rs 10,000 segment, more dependence on online channels even when demand is higher in offline channels, and a confusing portfolio. The Redmi Note 12 series contributed to over 14% of Xiaomi's total shipments. Realme saw a 52% YoY decline in Q1 2023 which pushed the brand to fifth place with a 9% share. The company continued to face challenges such as inventory build-up and unfavourable market conditions in the sub-Rs 10,000 segments. The Realme C55 series did well during the quarter, accounting for 11% of its shipments.
Apple grew 50% YoY and grabbed a 6% share in Q1 2023 even as it maintained its lead in the overall premium segment as well as in the ultra-premium segment with 36% and 62% shares respectively. The report said that the recent opening of its own retail stores in the country will further strengthen Apple's brand image and lead to better growth avenues for the whole Apple ecosystem.
