5G smartphones held a 41% market share in Q1 2023 despite a decline in the overall Indian smartphone market, according to a report by CyberMedia Research (via CNBCTV18). The report showed a 14% YoY growth in 5G smartphone shipments, with 34 new 5G launches during the quarter. Samsung was the leader in the 5G smartphone market with a 23% market share, followed by Apple with a 17% market share.
However, the report also showed that the overall smartphone market saw its highest-ever Q1 decline in 2023. CyberMedia Research's India Mobile Handset Market Review Report revealed that the affordable smartphone segment (sub-Rs 7,000) suffered a 38% YoY decline, while the value-for-money smartphone segment (Rs 7,000 - Rs 25,000) and premium smartphone segment (Rs 25,000 - Rs 50,000) witnessed 25% YoY and 23% YoY declines, respectively.
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Shipra Sinha, an analyst with CyberMedia Research (CMR), attributed the decline in smartphone shipments to weakened demand, inflation, and extended inventory. However, the super-premium smartphone segment (Rs 50,000 - Rs 1,00,000) and the uber-premium segment (>Rs 1,00,000) saw remarkable growth of 96% YoY and 208% YoY, respectively.
Samsung led the overall smartphone market with a 20% market share, followed by Vivo (17%) and Xiaomi (16%). In the feature phone segment, 2G and 4G feature phone shipments dropped by 15% and 35% YoY, respectively, as the demand for smartphone upgrades increased.
The decline in the affordable, value-for-money, and premium smartphone segments may be due to the impact of the COVID-19 pandemic on India's economy. However, the growth in the super-premium and uber-premium smartphone segments suggests that India's wealthy population is still interested in high-end devices despite the challenges posed by the pandemic. The increase in the 5G smartphone market share indicates that consumers are willing to pay a premium for the latest technology. As the rollout of 5G networks continues across India, it is likely that the demand for 5G smartphones will continue to rise.
