Samsung maintained its top position in Q3 2023 with a market share of 18%, shipping 7.9 million units, while Xiaomi climbed to the second position with 7.6 million shipments, fueled by its affordable 5G models, according to a report by Canalys.
The report said Vivo dropped to third shipping 7.2 million units, while Realme and Oppo (excluding OnePlus) finished fourth and fifth respectively, with 5.8 million and 4.4 million units shipped.
“In Q3, smartphone brands strategically promoted their festive product lineup, with a strong emphasis around budget-friendly 5G options,” said Sanyam Chaurasia, Senior Analyst at Canalys.
Chaurasia added that most brands entered the quarter with improved inventory positions, with the entry-level segment experiencing a surge in demand due to mass-market 5G models. Both Xiaomi and Realme saw traction with their affordable 5G models, particularly through online channels, he said.
“Motorola, Infinix and Tecno also drove limited volume through their new affordable 5G devices, as the market steadily transitions toward a dominant presence of 5G-enabled smartphones,” Chaurasia said.Canalys reported that the premium segment continued to witness robust growth, driven by Samsung’s S23 series and older-generation Apple iPhones which were being offered at attractive deals during the festive sales.Despite the positive signs of recovery, the top five brands witnessed a year-on-year decline, the remaining players have been resilient and stabilised the overall market shipments, Chaurasia said.
“Brands such as OnePlus, Infinix, Tecno, and Motorola witnessed strong growth mainly due to expanding channel presence, increased offerings, and few carried positive momentum from the chip shortage period of 2021,” he said, adding that the current challenges has made it tough for brands to preserve market share, manage inventory, and maintain profitability simultaneously.
“For instance, OPPO has shifted focus and is launching higher-priced models to prioritize profit margins over volume while Samsung has streamlined its portfolio across price bands,” he said.
Forecasting for 2024, Chaurasia said the road to recovery will be challenged by global economic concerns, particularly affecting the vulnerable entry-level segment. He advised brands to prioritise reducing channel pressures, and building a lean product portfolio.
“They should have ‘hero models’ in each price segment while maintaining balanced inventories across channels,” Chaurasia said.
