In a paradigm-shifting move, the Indian smartphone market experienced a notable transformation in 2023, witnessing a surge in MediaTek-based smartphones and a corresponding decline in Qualcomm’s market share.
According to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, this shift reflects a dynamic year for the industry, marked by changing consumer preferences and evolving technological landscapes.
Year of Growth
India saw the shipment of 146 million smartphones in 2023, indicating a modest 1% year-over-year growth. However, the latter half of the year painted a different picture with an impressive 11% growth, offsetting earlier declines. Despite consumer demand challenges leading to excess inventory, the average selling price (ASP) of smartphones reached a record high of US$255, a 14% increase from the previous year.
5G Adoption
A notable uptick in the premium segment, constituting 10% of the market in 2023 (compared to 6% in 2022), contributed significantly to the surge in ASP. Simultaneously, the rapid adoption of 5G technology marked 55% of total shipments, showcasing a clear shift in consumer preferences.
MediaTek’s Triumph
The standout trend of the year was the remarkable rise of MediaTek-based smartphones, claiming an impressive 50% of the market with a 6% year-over-year growth. Popular models like vivo’s T2x, Xiaomi’s Redmi A2, and Realme’s C55 led the charge, showcasing the brand’s appeal among consumers. In contrast, Qualcomm experienced a decline, settling at a 25% market share with a 6% drop in shipments.
Consumer
An exploration of the price segment breakdown revealed intriguing insights into consumer behavior. While the entry-level segment (sub-US$100) experienced growth, the mass budget segment (US$100<US$200) faced a decline in shipments.
The market landscape is shaped by prominent brands including vivo, Realme, and Samsung, collectively holding a substantial 53% share of shipments in this segment.
Brand Dynamics
Despite its high ASP of US$940, Apple showcased a remarkable year, shipping 9 million units. Samsung maintained its leadership position, albeit with a 5% decline in shipments. Vivo emerged as a strong contender, securing the second position with an 8% growth in shipments and ASPs.
Foldable Phones
The latest report sheds light on the surging trend of foldable phones, showcasing Samsung’s prominent position in the market despite intensifying competition from key players such as Motorola, Tecno, OnePlus, and OPPO. Additionally, 5G smartphones continued to gain traction, with the mass budget segment witnessing a significant increase in share.
Shifting Tides
As we reflect on the highs and lows of the Indian smartphone market in 2023, MediaTek’s ascendancy and Qualcomm’s adjustment underscore the ever-evolving nature of consumer preferences and technological advancements. The industry awaits further shifts, and only time will reveal the next chapter in this dynamic saga.
