Entry-level smartphone shipments to decline in 2022: IDC

The report said that the total number of smartphone shipments fell 10% to 144 million in 2022, while shipments fell 27% year-on-year (YoY) to 30 million units during the December quarter.

According to IDC, most users are not buying new smartphones due to rising prices, while the lack of options in the entry-level segment is a major deterrent.

Upasana Joshi, Research Manager, Client Devices, IDC India, said, “The lack of new launches in this critical mass segment was a hindrance to new smartphone users, thus limiting the growth of the overall market.”

Mint reported last year that due to the economic slowdown, most brands chose to focus more on premium smartphones. More launches in these segments and rising cost of components have also affected the average selling price of smartphones. According to IDC, the ASP of the smartphone in India increased by 18 percent to $224 (about Rs. 30,000). 18,000) in 2022.

Although shipments in the sub-$300 (approx. 25,000) segment declined by 15%, the mid-premium segment ($300-500) grew by 20%, while the premium segment (above $500) also grew by 55%, claims the IDC report.

Apple continued its good performance in the premium segment on the back of strong demand for the iPhone 13. The iPhone 13 became the third most shipped smartphone of the year with the premium segment accounting for 60% of the shipments.

Even though the ASP of smartphones is rising, the ASP of 5G smartphones has fallen as more brands are launching 5G smartphones in the mid-segment. According to IDC, 50 million 5G smartphones will be shipped in 2022 with an ASP of $395, down from $431 in 2021.

IDC analysts expect 5G smartphones to account for 60% of total smartphone shipments this year.

Navkendar Singh, Associate Vice President, Devices Research, IDC, warned that the recovery for the smartphone market will be long and difficult due to rising prices and concerns over excessive inventory.

“Vendors and channel partners need to rethink their plans for their entry-level portfolio, drive 5G device affordability with attractive trade-in programs and financing schemes,” he added.

Furthermore, the IDC report shows that feature phones will still account for close to a quarter of the total 201 million mobile phones shipped in 2022. Shipments of feature phones fell 18% to 57 million.

According to IDC data, in terms of market share, Xiaomi is still the number one smartphone vendor in India, accounting for 21% of total shipments. It was followed by Samsung (18.1%), Vivo (15.9%), Realme (14.5%) and Oppo (11.9%).