Apple Expands Presence in India's Growing Smartphone Market as Offline Sales Surge, Samsung Leads

Canalys flagged India's smartphone market's signs of stabilization in the second quarter, with 36.1 million units shipped, a marginal 1% decline Y/Y versus the steep 20% drop experienced in Q1. Notably, the market also witnessed 27% and 6% declines in the Q4 and Q1 quarters of 2022, respectively.

Sanyam Chaurasia, an analyst at Canalys, attributed this improvement to positive macro indicators, like increased manufacturing output and reduced inflation rates.

The market saw an 18% growth compared to the previous quarter, driven by improved inventory levels, which Canalys attributed to a more favorable business environment. Chaurasia emphasized that smartphone vendors adapt to the dynamic market conditions and focus on long-term sustainability.

Samsung Electronics Co, Ltd SSNLF continued to rule the market in Q2, capturing 18% of the market with 6.6 million shipments. Vivo closely followed with 6.4 million phones shipped, while Xiaomi Corp XIACY secured the third position with 5.4 million shipments.

India is known as the second-largest smartphone market. Varun Mishra from Counterpoint Research anticipates additional 300 million new internet users in the country.

Chaurasia anticipates that companies will promote their affordable 5G smartphone portfolios during the upcoming Cricket World Cup in India, scheduled for October. 

However, he also highlighted potential risks, including uncertainties related to the monsoon season. The Indian government is eager to stimulate demand before next year's national elections.

Canalys highlighted the importance of physical sales channels in India, as consumers prefer buying smartphones offline. This preference has influenced the retail strategies of companies operating in the market. Notably, Apple Inc AAPL recently opened two retail stores in Delhi and Mumbai, while Samsung announced plans to establish 15 premium experience stores in major cities like Delhi, Mumbai, and Chennai by the year's end.

Chaurasia noted the surge in offline consumer demand in rural and urban areas. In contrast, online order has been more inconsistent and primarily driven by urban consumers during e-commerce sales events. 

Photo via Wikimedia Commons

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.