Smartphone mkt to shrink again this yr

Smartphone shipments that crossed 100 million for the first time in 2015 peaked at 160 million in 2021 before shrinking 10% to 144 million in 2022

- Gulveen Aulakh

India’s smartphone market is grinding through its second year of contraction, the first time since the market took off 14 years ago, a Mint analysis of data from three market research firms showed.

Smartphone shipments that crossed 100 million for the first time in 2015 peaked at 160 million in 2021 before shrinking 10% to 144 million in 2022. According to data from IDC, shipments may fall a further 2-6% to touch 135-140 million in 2023. Upasna Joshi, research manager at IDC India, said average sale prices have jumped nearly 30% in the last two years, leading to “challenges in final sales to consumers".

Shipments in the January-June period were nearly 10% lower from a year earlier, in an ominous trend for brands and retailers ahead of the festive season when shipments typically spike in anticipation of increased purchases.