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India's smartphone market has maintained stability with 148.6 million shipments overall in 2023, witnessing a minor drop of two per cent, a new report has said.

According to the market research firm Canalys, Indian smartphone vendors benefited from strong demand throughout the festival season, driving Q4 sales to 38.9 million units -- a remarkable 20 per cent increase in comparison to the previous year.

“In 2023, growing investment in mainline retail space proved beneficial not only for vendors but also allowed the overall market to stabilise,” said Sanyam Chaurasia, Senior Analyst at Canalys.

Samsung maintained the top position in the fourth quarter (Q4) of 2023 with a market share of 20 per cent and shipments of 7.6 million units. Xiaomi continued its robust performance, claiming second place by shipping 7.2 million units. Vivo secured third position with shipments of seven million units, while realme and OPPO rounded out the top five by shipping 4.5 million and 3.7 million units, respectively, the report mentioned.

“The premium segment witnessed robust growth, thanks to easy financing options, incentive schemes for retailers and rising disposable income,” said Chaurasia.

“With the celebration of Diwali in November 2023, Apple got the opportunity to push the latest iPhone 15 series during the festive sales, contributing more than 50% to its shipments in Q4," he added.

The analyst also noted that Samsung had set aggressive retail targets for its premium Galaxy S23 series to drive premium segment growth. Along with this, Samsung’s latest Galaxy S23 FE launch in Q4 drove shipments, due to compelling banking deals.

“Canalys expects the Indian smartphone market to grow by mid-single digits in 2024, driven by affordable 5G and the pandemic period replacement cycle. But the biggest challenge for vendors this year will be to manage the rising bill of materials costs,” Chaurasia stated.