The Indian smartphone market struggled in 2022, falling short of expectations, says Counterpoint. One major factor was the component shortages that affected the market at the beginning of the year. While these issues were eventually resolved in the first half of the year, consumer demand did not recover as expected.
This weak demand was particularly evident in the entry and mid-level price bands, as rising component prices and inflation led to higher retail prices. Despite these challenges, the premium market in India continued to perform well in 2022, with the >INR 30,000 ($400) price range reaching a new high. This premiumization of the market helped drive positive revenue growth, with the highest-ever average selling price (ASP) of nearly INR 20,000 ($250).
Here are four reasons why the Indian smartphone market may have a better time in 2023, as per the research firm, Counterpoint.
India’s smartphone market expected to grow with increase in replacement demand
In India, there are currently over 600 million smartphone users, a number that is expected to increase as more feature phone users switch to smartphones. The market for smartphones in India is likely to be driven by replacement demand from these users in 2023 and beyond.
5G to drive smartphone sales in 2023
5G networks are now available in multiple cities in India, and while 5G smartphones have received a lot of attention in the market, they are expected to make up only one-third of the market in 2022. Despite this, 5G technology has been a popular feature for Indian consumers, and with the rollout of 5G networks, many are expected to upgrade their 4G smartphones to 5G models in 2023.
Government purchasing of smartphones expected to boost sale
Rajasthan has announced a plan to provide smartphones to women in 2023 through a tender process. We can expect other states to announce similar programs that could increase smartphone sales next year.
Positive changes in macroeconomic conditions
The economic conditions in India are expected to improve in the coming year, leading to a more favorable environment for consumer spending. With the expected improvement in economic conditions, these consumers will likely feel more convinced to make a new smartphone purchase in 2023. This, in turn, could lead to an increase in demand for smartphones in the coming year.
Despite facing challenges in 2022, the smartphone market in India has shown resilience and performed better than many other regions. Several factors are expected to contribute to the long-term growth of the market in India, including a large installed base of smartphones, the ongoing migration of feature phone users to smartphones, the development of local smartphone production and supply chains, and the emergence of new use cases for smartphones, likely to drive the market in the coming years.
This weak demand was particularly evident in the entry and mid-level price bands, as rising component prices and inflation led to higher retail prices. Despite these challenges, the premium market in India continued to perform well in 2022, with the >INR 30,000 ($400) price range reaching a new high. This premiumization of the market helped drive positive revenue growth, with the highest-ever average selling price (ASP) of nearly INR 20,000 ($250).
Here are four reasons why the Indian smartphone market may have a better time in 2023, as per the research firm, Counterpoint.
India’s smartphone market expected to grow with increase in replacement demand
In India, there are currently over 600 million smartphone users, a number that is expected to increase as more feature phone users switch to smartphones. The market for smartphones in India is likely to be driven by replacement demand from these users in 2023 and beyond.
5G to drive smartphone sales in 2023
5G networks are now available in multiple cities in India, and while 5G smartphones have received a lot of attention in the market, they are expected to make up only one-third of the market in 2022. Despite this, 5G technology has been a popular feature for Indian consumers, and with the rollout of 5G networks, many are expected to upgrade their 4G smartphones to 5G models in 2023.
Government purchasing of smartphones expected to boost sale
Rajasthan has announced a plan to provide smartphones to women in 2023 through a tender process. We can expect other states to announce similar programs that could increase smartphone sales next year.
Positive changes in macroeconomic conditions
The economic conditions in India are expected to improve in the coming year, leading to a more favorable environment for consumer spending. With the expected improvement in economic conditions, these consumers will likely feel more convinced to make a new smartphone purchase in 2023. This, in turn, could lead to an increase in demand for smartphones in the coming year.
Despite facing challenges in 2022, the smartphone market in India has shown resilience and performed better than many other regions. Several factors are expected to contribute to the long-term growth of the market in India, including a large installed base of smartphones, the ongoing migration of feature phone users to smartphones, the development of local smartphone production and supply chains, and the emergence of new use cases for smartphones, likely to drive the market in the coming years.
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