In the radiant glow of Diwali, the festival of lights, India witnessed a substantial surge in smartphone sales, recording a 6-8% year-on-year (YoY) increase. The driving forces behind this upswing were the escalating demand for 5G connectivity and the persistent need for device replacements.
During the festivities, Amazon India took center stage, reporting a remarkable spike in premium smartphone sales, achieving a notable 2.5X increase compared to the previous year. The first two days of the Amazon sale unveiled OnePlus and Samsung as the standout stars among smartphone brands.
Apple’s iPhone also contributed to the Diwali smartphone spectacle, surpassing the 1.5 million units mark in the first week of Indian festive sales. According to Counterpoint Research, this marked a historic achievement, underlining the enduring appeal of Apple’s devices.
Noteworthy findings from the festive smartphone extravaganza include a significant 35-40% YoY boost in the general trade market share and a burgeoning 25% growth in the overall value of smartphone sales during the 30-day festive season. Tarun Pathak, Research Director at Counterpoint Research, expressed optimism, stating, “Overall, it was a better Diwali than last year.”
Amazon’s disclosure of sales figures revealed that 60% of all smartphones sold were 5G ready, aligning with Cybermedia Research’s forecast of 6-8% YoY volume growth, with a focus on three-fourths of smartphone sales being attributed to the upgrade to 5G models.
Shipra Sinha, an analyst at CMR, attributed the surge in premium smartphone sales to affordability initiatives and enticing EMI offers during the festive season. Notably, 70% of smartphone orders originated from Tier II and beyond cities, showcasing the broadening reach of premium devices.
Amazon and Flipkart, the titans of Indian e-commerce, showcased their dominance during the festive sales. Amazon’s Great Indian Festival 2023 recorded over 9.5 crore customer visits on the early access day, while Flipkart’s Big Billion Days sale logged 9.1 crore user visits in the first 48 hours.
As the smartphone market in India navigates evolving trends, Counterpoint’s observations revealed that 80% of phones sold on Amazon and Flipkart in the first 48 hours were 5G capable. The premium segment experienced nearly a twofold increase in sales across online channels.
Despite a slight decline of 3% in shipments, with 43.0 million recorded in Q3 2023, India remains a vibrant smartphone market with 931 million users. Projections indicate that this figure is set to exceed 1.1 billion by 2025, growing at an impressive CAGR of 22%.
Adding to the festive fervor, India’s e-commerce sector is poised for robust growth, expecting an 18-20% surge to INR 90,000 crores, a significant leap from the previous year’s INR 76,000 crores, driven by a resilient economy and heightened consumer spending, according to a report by Redseer.
