India’s smartphone shipments declined 19% year-on-year (YoY) in the first quarter of 2023 (Q1 2023) to reach over 31 million units, a new report has said. It added that this was the highest-ever Q1 decline seen by India’s smartphone market. Notably, this is the third consecutive quarterly decline in Indian smartphone shipments.
According to the latest research from Counterpoint’s Market Monitor service, sluggish demand, high inventory build-up carried over from 2022, growing consumer preference for refurbished phones and a pessimistic channel view of the market contributed to the decline in smartphone shipments.
Consumer demand focussed on the promotional period
According to senior research analyst Shilpi Jain, there is a change in consumer behaviour and the demand is now concentrated around promotional periods.

“The beginning of the quarter saw a surge in demand across channels around the Republic Day sales period. However, demand dropped significantly after the sales period. Channel players are now focussing on getting rid of existing inventory instead of creating a fresh inventory of new models,” Jain said.
5G smartphones and premium segment grew
In Q1 2023, 5G smartphones contributed 43% of the total shipments, registering 23% YoY growth as consumers kept upgrading to 5G devices. The situation is believed to remain similar in Q2 2023 as well. The market research company said that the growth may be back in the second half of the year “owing to faster 5G upgrades, easing macroeconomic pressure and festive season.”
Prachir Singh, who is also a senior research analyst, said that the premiumisation trend is becoming stronger with each passing quarter.
“The premium segment’s share almost doubled in Q1 2023 compared to Q1 2022. Affordability is the key here as we saw more financial schemes being launched, like Apple’s ‘No-cost EMI with zero down payment’ through HDB Financial Services, offers on latest premium segment launches, increase in trade-in offers and push from retailers,” Singh said.

The market research firm also said that the sub-Rs 10,000 price band continued to decline in Q1 2023, with its shipments falling 9% YoY.
Samsung leads for second consecutive quarter
Samsung dethroned Xiaomi after 20 quarters to gain the top spot in Q4 2022 and the South Korean brand continued its performance to ship the highest number of smartphones in India in Q1 2023.
Samsung maintained its top position with a 20% share and remained the leading brand for 5G shipments, accounting for a 24% share.
Vivo also maintained its second position in Q1 2023 with a 17% market share. But the Chinese brand witnessed a 3% YoY decline.
Xiaomi experienced a significant drop from Q1 2022, falling to the third spot during Q1 2023 with a 16% share. It suffered a 44% YoY decline – the largest the brand has ever recorded.
At number 4 was Oppo which recorded 9% YoY growth with a 12% share, followed by Realme, which saw a 52% YoY decline in Q1 2023 with a 9% share.
Apple leads premium segment
Apple grew 50% YoY and grabbed a 6% share in Q1 2023. The brand maintained its lead in the overall premium segment as well as in the ultra-premium segment with 36% and 62% shares, respectively.
OnePlus was the fastest-growing brand with 72% YoY growth in Q1 2023 driven by the strong demand for its OnePlus Nord CE 2 Lite and the OnePlus 11 series.
Transsion Group brands Itel, Infinix and Tecno accounted for 16% of India’s handset market with 19% YoY growth in Q1 2023.