A consumer examines a smartphone with a high price tag in an Indian electronics store.
India’s smartphone market saw a significant 10% year-on-year decline in shipments during the second quarter, marking the largest drop for the June quarter in six years. This downturn is largely attributed to increased handset prices, a consequence of rising memory component costs that compelled brands to pass on the expenses to consumers, thereby impacting demand.
The budget segment, typically a strong performer in the Indian market, experienced a particularly sharp contraction, with shipments plummeting by 45%. This indicates a pronounced sensitivity to price increases among entry-level consumers.
Amidst this challenging market environment, Samsung emerged as the sole major brand to record shipment growth during the quarter. The company’s ability to navigate the rising costs and maintain or increase its market share suggests successful supply chain management or strategic pricing initiatives.
The overall decline highlights the economic pressures affecting consumer spending on electronics in India and the delicate balance brands must strike between component costs, pricing strategies, and market demand.
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