India's smartphone market saw a steep decline in Q1 2023, with shipments dropping by 19 percent YoY to over 31 million units, according to a report. This marks the highest-ever Q1 decline for the Indian smartphone market and the third consecutive quarterly decline.

According to Counterpoint's Market Monitor service, several factors contributed to this decline, including sluggish demand, high inventory build-up from 2022, growing consumer preference for refurbished phones, and a pessimistic channel view of the market.

Samsung maintained its position as the top smartphone brand in India for the second consecutive quarter with a 20 percent market share. The company also held the top spot for 5G shipments.

Also Read: Samsung’s profit drops 95% amid weak memory chip demand

“Samsung’s ultra-premium segment (>Rs 45,000) grew 247 percent YoY in Q1 2023 driven by the successful launch of the S23 series and financing options,” the report said.

Apple maintained its lead in the overall premium segment as well as in the ultra-premium segment with 36 percent and 62 percent shares, respectively. According to Counterpoint, with the recent opening of its retail stores in the country, Apple is expected to strengthen its brand image and create better growth avenues not just for iPhones but for the entire Apple ecosystem.

“Affordability is the key here as we saw more financial schemes being launched, like Apple’s ‘No-cost EMI with zero down payment’ through HDB Financial Services, offers on latest premium segment launches, increase in trade-in offers and push from retailers,” said Shilpi Jain, Senior Research Analyst at Counterpoint.

Also Read: In Pics | Fans throng Apple's flagship store in Delhi

On the other hand, Xiaomi experienced a significant drop in Q1 2023. The brand recorded a 44 percent YoY decline, the largest decline it has ever faced.

“The decline was due to weak demand in the sub-Rs 10,000 segment, more dependence on online channels even when demand is higher in offline channels, and a confusing portfolio,” Counterpoint said.

Meanwhile, OnePlus emerged as the fastest-growing smartphone brand in India in Q1 2023 with a 72 percent YoY growth rate, driven by strong demand for its OnePlus Nord CE 2 Lite and newly launched OnePlus 11 series. OnePlus' Nord CE 2 Lite 5G was also the best-selling model in Q1 2023.

Also Read: Reels sees 24% increase in time spent on Instagram with AI recommendations, says Mark Zuckerberg