The India smartphone market is expected to rise 10% in 2023, reaching 175 million devices, thanks to a 5G push and a large installed base, according to a research released on Friday. India presently has over 600 million smartphone users, a figure that is likely to rise as more feature phone users transition to smartphones.
According to Counterpoint Research, replacement demand from these consumers will drive the market in 2023 and beyond. 5G networks are presently operational in a number of cities. Despite the fact that 5G cellphones have been making headlines, they will account for only one-third of the market in 2022.
“5G has been high on Indian consumers’ wish lists and with 5G networks now being available, many consumers will replace their 4G smartphones in 2023,” the report mentioned.
According to Counterpoint Research, smartphone shipments are predicted to fall 5% year on year in 2022, marking the second drop in the last three years.
The purchase of smartphones by the government will boost sales. Rajasthan has issued a tender for the purchase and distribution of smartphones to women 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,” said Ankit Malhotra, research analyst.
According to the report, the Indian market has steadily increased over the last five years, with the exception of the Covid-19 2020, which is expected to grow 1.5 times from 2016 to 2021.
In 2022, the market fell short of forecasts. The year began with component shortages. Even if the supply crisis was remedied by the first half of 2022, consumer demand did not recover as projected. Despite the drop in 2022, India’s smartphone market has been resilient and outperformed several other regions, according to the research.
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