Smartphone shipments seen to have shrunk 15% last quarter

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Key Points

Shipments of smartphones in India are likely to have contracted by 10-15% in the first quarter of 2023 from a year ago as brands focused on clearing inventory amid subdued demand, according to market trackers...

In January, smartphone sales were 19% higher than in December 2022, supported by online purchases around Republic Day, but in February they dropped by 12% (month-on-month), said Shilpi Jain, senior research analyst at Hong Kong-based Counterpoint Research..

"February was slower because after the sale, footfalls have declined, from what we have heard from retailers and other channel partners."..

"Channel partners are vulnerable and are not able to accept large quantities of shipments," said Sanyam Chaurasia, analyst at Singapore-based Canalys, citing it as a reason for slower inventory movement in Q1..

However, sales momentum in the premium smartphone segment sustained due to newer launches and discounts, but remained low for the overall market...

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