India Smartphone Market Plummets 10% As Prices Hit Record

India’s smartphone market contracted by 10% in the third quarter from last year as prices skyrocketed, market research firm IDC said on Monday.

The last quarter was the lowest third-quarter since 2019, with an inventory pile-up expected to result in an underwhelming fourth quarter, IDC said.

Despite the festival season beginning earlier than usual, the unrelenting rise in prices pulled down shipments in the world’s second-biggest smartphone market, it added.

Prices Soar

The average selling price jumped 15% year-over-year, and 6% from the previous quarter, to a record $226, IDC said.

“The average selling price has grown consistently for the past eight quarters in a row due to increasing costs and growing 5G shipments at mid-premium price points,” Upasana Joshi, research manager of client devices at IDC, said.

Moreover, the inventory pile-up and post-festive tapering in demand will lead to a muted fourth quarter, said Navkendar Singh, associate vice president of devices research at IDC.

IDC expects 2022 shipments of around 150 million units, a decline of 8-9% over the previous year, and Singh does not expect 2023 to be any better.

“The major challenges going into 2023 are the impact of inflation on consumer demand, increasing device costs, and slow feature phone-to-smartphone migration.”