Counterpoint Research has published a new report that forecasts overall smartphone market shipments for 2022. Shipments are expected to fall 5% year-on-year in 2022. Positively, the premium market expanded in 2022, with the price band above INR 30,000 reaching a new high.
According to the research firm, the market failed to meet expectations in 2022 due to a variety of factors such as an inflationary macro environment, component shortages and price increases, and overall global economic weakness.
Throughout the year, demand for entry-level and midrange smartphones was lower. Yet, the market’s continued premiumization is the primary reason for positive revenue growth, with the highest-ever average selling price (ASP) of close to INR 20,000.
The report asserts that a 10% growth in the Indian smartphone market to 175 million units in 2023 is forecast. This forecast was made primarily due to factors such as a large installed base, feature phone-to-smartphone migration, local smartphone production, supply chain development, and the emergence of newer use cases that will drive market growth in the long term.
It will be interesting to see if the Indian smartphone market grows at the projected rate in 2023.