In this industry, we will be discussing an exponentially growing industry in the country i.e., Smartphone Industry. In this article, we will talk about the latest market report on the Indian Smartphone Industry, the impact of 5G on the smartphone industry, and what should individuals do.
- As per the report of International Data Corporation (IDC), India’s smartphone market has grown at the rate of 3% to 3.5 Cr. units during April to June quarter of FY23.
- During the January-March 2022 period, this growth was around 3.38 Cr. units.
- Talking globally, Samsung is the market leader with a 22% market share, which is being followed by Apple with a market share of 16%. Xiaomi with a 14% market share reserves the third position.
- In India, as per the report IDC and based on Unit market share, Xiaomi tops the list which is being then followed by RealMe, and Vivo.
- There are 3 segments in the smartphone industry i.e, Premium, Mid-segment, and Sub-segment. The models ranging above Rs. 40,000 can be classified under the premium segment, while the model price ranging between 16,000 to 40,000 can be categorized under Mid-Segment. Sub-segment includes the smartphones whose price falls below the level of Rs. 16,000.
- In the overall smartphone market, the premium segment only accounts for a 6% market share, while the mid and sub-segments registers for a market share of 17% each.
- In the premium segment, Apple accounts for around 53% market share which is a dominating position in the category. Apple is then followed by One Plus and Samsung with a market share of 19% and 15% respectively.
Impact of 5G on the Smartphone Industry:
- During Q1FY23, 1.1 Cr. 5G smartphones were shipped at an average selling price of around Rs. 30,000 per unit. Whereas between FY20 to June 2022, around 5.1 smartphones has been shipped.
- By 2023, it is expected that the 5G Smartphone market will have around 50% market share.
- Further, as per the report of Deloitte, there will be an increase in smartphone users in India to around 100 Cr. by the year 2026.
Challenges for Market Leaders:
- At the Indian level, Xiaomi is the market leader with around 20% and might face some challenges as according to some reports, the Government of India is planning to ban Chinese smartphone prices below Rs. 12,000. Later, this report was denied by government sources.
- The Government is planning such steps as there are reporting several cases of money laundering by this Chinese Smartphone Company.
- If this decision of the Government of India gets implemented anyhow, which looks quite not easy, then the domestic players like Micromax, Lava, etc. might get some golden opportunity to grab some market share.
- Besides these domestic companies, Reliance-backed Jio Phones which has recently made its entry might also be the possible beneficiary of this movement in the smartphone industry.
What Should Individuals Do?
The Indian Smartphone Industry is witnessing significant growth with rising users and increasing penetration. The growth in the industry is very much favorable for global brands as well as domestic companies. And if the domestic companies get some favorable support domestically, the domestic company like Micromax, Lava, etc. may get the opportunity to revive from the current stage.
Disclaimer: The information here is provided for reference purposes only and should not be misconstrued as investment advice. Under no circumstances does this information represent are commendation to buy or sell stocks or MF.