Premium mobile sales soar, but overall market declines

Smartphone shipments in the premium segment (above ₹30,000) grew a whopping 112% on year in the second quarter ended June 2023, outperforming a shrinking overall market hurt by tepid demand, according to a research report released on Monday.

The strong growth saw the premium segment accounting for a record 17% of overall shipments, propelling India to become one of Apple's top-five markets where the Cupertino-based iPhone maker achieved 56% on-year growth. Apple also led the ultra-premium segment (above ₹45,000) with 59% market share, said Counterpoint Research in its new report.

However, overall Q2 saw the fourth consecutive quarterly decline, with shipments declining 3% on-year. That said, the magnitude of decline came down significantly from 19% in the first quarter, due to a base effect, pent-up demand, and improving macroeconomic conditions, marking early signs of a market recovery.


The research firm said offline sales channels has been growing and is expected to rise to 54% in 2023, with online-heavy brands such as Xiaomi, Realme, and OnePlus now emphasising offline expansion. Omni-channel brands like Samsung and Apple are also increasing their offline presence to cater to a diverse consumer preferences.

"This shift reflects a more comprehensive approach, leveraging both online and offline channels to create a seamless and personalised customer experience," Counterpoint said. The research firm said the market was able to exit Q2 2023 with eight weeks of inventory as Xiaomi and Realme who saw a sharp decline in shipments in Q1 2023, managing to clear most of their inventory through multiple sales and promotions.

Samsung remained the top smartphone brand, with 18% market share, followed by Vivo which was the only brand in the top five to achieve on-year growth in shipments. Xiaomi and Realme came third and fourth respectively with 15% and 12% market share, while Oppo remained fifth with 11% market share. The research firm said 5G smartphone shipments in India crossed the 100 million cumulative mark in Q2, with shipments growing 59% on-year during the quarter.

"5G upgrades played a major role as OEMs kept launching 5G devices in the ₹10,000-15,000 price band for a wider reach," said senior research analyst Shilpi Singh.