NEW DELHI: India’s smartphone shipments are expected to fall by 5% year-on-year (YoY) in 2022, dipping for the second time in the last three years, according to Counterpoint Research’s latest projections.According to the research, the inflationary macro environment, component shortages and increase in their prices and wild cards such as the Russia-Ukraine war and weakness in the overall global economy affected the smartphone market globally, including in India.
“The Indian market has seen a steady rise in the last five years barring the COVID-hit 2020 to grow 1.5 times from 2016 to 2021. The market is projected to grow 10% in 2023 to reach 175 million units,” reads the report.However, the report pointed out that the smartphone market in 2023 expected to grow as feature phones migrate to smartphones. According to the research, India currently has more than 600 million smartphone users, a number that is expected to grow over time as more feature phone users migrate to smartphones.
The replacement demand from these users will drive the market in 2023 and beyond.Also, 5G has been high on Indian consumers’ wish lists. With 5G networks now available, many consumers will replace their 4G smartphones in 2023. “We also expect the inflationary macro environment to get better next year. Therefore, consumers who postponed buying a new phone in 2022 will be able to buy a new one in 2023,” says the report.