Smartphone market may grow 10% in 2023

New Delhi: The Indian smartphone market, which battled global factors such as the inflationary macro environment as well as component shortages due to supply chain issues and the Russia-Ukraine war to register a 5 per cent fall in 2022, is set to remain under pressure next year, showing modest growth. India currently has more than 600 million smartphone users, a number which is expected to grow over time as more feature phone users migrate to smartphones.

The replacement demand from these users will drive the market in 2023 and beyond, according to Counterpoint Research. "5G accounted for almost one-third of smartphones in India in 2022. Next year, close of 50 per cent of all smartphones will be 5G," research analyst Ankit Malhotra told IANS. The 5G networks have gone live in multiple cities, thanks to Reliance Jio and Bharti Airtel.

Even though 5G smartphones have been making news in the market, they will account for just one-third of the market in 2023. 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 government purchase of smartphones will also push sales, Rajasthan has already rolled out a tender for the acquisition and distribution of smartphones among 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," according to Counterpoint Research. Despite the dip in 2022, India's smartphone market has been resilient and performed better than many other regions.

A large installed base, feature phone-to-smartphone migration, local smartphone production, development of supply chain and the emergence of newer use cases will continue to grow the market in the longer term, according to industry experts.