The Indian smartphone market is likely to reach $42 billion in overall revenue this year, up by around 18 per cent over previous year, selling about 140 million units, a report showed on Thursday.
The 140-million smartphone sales target for 2023 is an uphill task but still achievable looking at the big picture that includes the 5G opportunity in the affordability segments, macro-economic conditions and the replacement cycle potential sales, according to market research firm techARC.
“The execution of the key brands in terms of limiting their competition by narrowing operations will be a key enabler in this scale,” it added.
In the first half of this year (January-June period), India saw sales of around 49 million smartphones, which is roughly 25 per cent lower than the usual run rate.
In the second half (which also has the festive quarter), the market will be able to make up for the weak response of the first half, with the total sales registering around 140 million mark by the end of 2023.
Affordable 5G smartphones and replacement cycles will drive this growth. More than 58 per cent of the total smartphones sold in 2023 are expected to be 5G.
“While there will be attempts to have ‘symbolic’ sub Rs 10,000 5G smartphones, we believe the market to have a range of 5G smartphones starting Rs 12,000 helping in mass adoption of 5G smartphones in 2023 and beyond,” said the report.
The availability of 5G chipsets in the mid-range is allowing OEMs to consider making more 5G smartphones with affordability at the centre stage.
Samsung has gone aggressive with its M series attack on the affordable segment. While it continues to leverage its stronghold on the ultra-premium android segment, M series has established it in the lower crust. Nord has emerged among a very successful series that smartphones have had so far. This has strengthened OnePlus’ beyond the premium segment, the report mentioned.
Apple drove the luxury (Rs 50,000) growth with Samsung as the de facto choice of consumers wanting to buy Android beyond Rs 100,000 in India.
Lava has made a comeback ending the debate that there is no room for Indian brands. Motorola, and Tecno from Transsion Holdings have shown good results with a balanced presence in offline and online channels, said the report.
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