Market research firm IDC released a report on Monday that the Indian smartphone market fell 10% year-on-year to 43.5 million units last quarter, the lowest third-quarter shipments since 2019, and it is expected that high inventory accumulation will lead to a lackluster fourth quarter.
IDC said the relentless rise in prices dragged down shipments in the world's second-largest smartphone market despite the holiday season starting earlier than usual. The average selling price increased by 15% year-on-year and 6% from the previous quarter, reaching a record $226.
Upasana Joshi, research manager for client devices at IDC said, average selling prices continued to grow for eight consecutive quarters due to increased costs and 5G shipments growing at a mid-premium.
Navkendar Singh, research associate vice president of equipment at IDC said inventory buildup and post-holiday demand contraction will lead to a weak fourth-quarter performance.
IDC expects Indian smartphone shipments to be about 150 million units in 2022, down 8-9% from the previous year, and Singh does not expect 2023 to be better. The main challenges heading into 2023 are the impact of inflation on consumer demand, rising device costs, and the slow migration of feature phones to smartphones.
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