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OnePlus Launches Its First Book-type Foldable – The OnePlus Open

Foldable smartphones made up a little more than 2% of US smartphone sales in 2022 but remain a growing and promising segment.
OnePlus is the third OEM to enter the US market with a book-type foldable featuring strong hardware specifications rivaling Samsung and Google.
The OnePlus Open will sell unlocked and retail for $1,699.99 at OnePlus.com, Amazon.com and Bestbuy.com with pre-orders beginning on October 19 and full launch on October 26.

OnePlus launched its first foldable smartphone, the book-type OnePlus Open, on Thursday to enter the small but growing US foldable market. The new launch, which is now open for pre-orders, makes OnePlus the third OEM with a book-type foldable in the US market, competing with Samsung’s Galaxy Z Fold 5 and Google’s Pixel Fold. Motorola is the only other OEM that has foldable smartphones in the US market, namely the new RAZR and RAZR Plus, but these are clamshell-style foldables.

In 2022, US foldable smartphone sales accounted for just over 2% of overall smartphone sales in the country. The portion has grown further in 2023. Foldables are an important segment for the Android market as they are one of the few categories where we are seeing iOS to Android conversion.

OnePlus Open in Voyager Black and Emerald Green

The OnePlus Open is a strong contender versus both Samsung’s Fold 5 and Google’s Pixel Fold, as the company spent over a year on R&D with the help of OPPO. The new device is currently the lightest (239g) and one of the thinnest (5.8mm unfolded) foldables available in the US. It also supports one of the lightest hinges with only 69 parts made with various metals and materials to make the hinge lightweight but durable. OPPO will release the same phone as the Find N3 in other markets. Compared with the other two devices on the market, OnePlus is priced very competitively. It is $100 cheaper than its counterparts and has better or on-par top-line specs, aside from not having wireless charging.

A short review – a multimedia powerhouse with a strong camera and Open Canvas

Having personally tested the device over the last two weeks – the OnePlus Open holds up to the hype. The flagship specs make the device a breeze to use. The fingerprint sensor is snappy, the battery lasts a full day, and pictures turn out great, especially if you like the signature Hasselblad look.

Hasselblad 3x portrait mode at night

OnePlus has also added a new feature called Open Canvas which enables multi-window operations and promises to be able to resize 95% of apps without weird, forced visuals or use adjustments. Up to three windows can be displayed on the screen at the same time.

OnePlus Open Canvas triple split mode

OnePlus also added a desktop-like taskbar for easy application access. Unfortunately, it does not have a desktop mode like Samsung’s DeX, which would have enabled even more productivity with the device. There is no compatibility with the OnePlus Stylo either. However, the overall device was quite impressive and OnePlus’ commitment to make a competitive foldable flagship is commendable.

Source: OnePlus Open event

OnePlus’ foldable outlook – promising if branding efforts continue

The key for OnePlus will be getting the media and consumers’ attention with its Open since it is not being ranged in carrier channels. This is where the Pixel Fold and the Samsung Galaxy Z Fold 5 will have a leg up as over 90% of smartphone sales happen within a postpaid or prepaid channel sale. Selling open market is often challenging as consumers are used to getting “free” devices from carriers with an upgrade and/or trade-in or new line offer creating the illusion of bargains that are ultimately recouped by carriers via higher service plans or customer loyalty to a carrier.

OnePlus is offering some very competitive promotions on its website to gain a competitive advantage in the open market. Customers can trade in any device, any condition, and receive at least $200 off on the Open, and get up to $1,000 off. This matches Samsung’s Fold 5 trade-in value promotion while Google Fold’s maximum trade-in value is $590. Additionally, OnePlus is giving customers free OnePlus Buds Pro 2 ($150 value), offering 24 months 0% APR financing, three months of YouTube Premium, and a six-month Google One 100GB membership.

If OnePlus is able to get deeper into the public eye with its brand and new foldable, the device could become a strong contender in the still-nascent US foldable market. In the past, OnePlus has partnered with the Boston Marathon, Riot Games, and the UFC to get its name out to different customer segments. It needs to continue these efforts to drive potential customers to the open market sales channels for the device to be successful.

The OnePlus Open will sell unlocked and retail for $1,699.99 at OnePlus.com, Amazon.com and Bestbuy.com with pre-orders beginning on October 19 and a full launch on October 26.

86% of Respondents Highlight Indian Festive Season Smartphone Buyers Going Online, Amazon Top Preference: Survey

Of those planning to purchase a smartphone this festive season, 31% mention upgrading to the latest technology as the key reason for the purchase.
40% prefer to purchase smartphones online, whereas 46% are comfortable taking either of the two routes.
Amazon is the top preferred online channel for 48% of those planning to make online purchases (86% of the total respondents).
Samsung, Apple, Xiaomi and OnePlus are the most preferred brands this festive season.
42% of the respondents plan to purchase a premium smartphone (INR 30,000 or ~$360 and above).
5G, latest processor and RAM are the top specifications that the respondents will consider when making the purchase.

New Delhi, Buenos Aires, Denver, London, Hong Kong, Beijing, Seoul – October 5, 2023

Of Indian consumers planning to purchase a smartphone this festive season, 31% mention upgrading to the latest technology as the key reason for the purchase according to a survey conducted by Counterpoint Research.

For 18% of respondents, 5G is the top specification to consider, followed by the latest processor (14%) and RAM (9%). In terms of budget, 42% plan to purchase a premium smartphone (INR 30,000 or ~$360 and above). And with respect to channel preference, up to 86% could purchase via online, with Amazon as the top preferred platform.

Conducted in October among consumers in India planning to buy a smartphone this festive season, the survey covers topics like key reasons for making the purchase, brand preference, preferred price point, desired specifications and offers. Further, future preferences combined with the current smartphone purchase journey provide insights into consumers’ switching pattern or loyalty towards brands and purchase channels.

Key Takeaways from India Pre-festive Season Smartphone Consumer Survey

Source: India Pre-festive Season Smartphone Consumer Survey, October 2023

Commenting on the festive season smartphone demand, Senior Analyst Arushi Chawla said, “Many people time their purchases with the festive season keeping in mind the auspiciousness of the occasion and also the competitive offers during the period. With the smartphone becoming the most important electronic gadget, consumers are cautious about its quality and features. That is why they consult multiple sources before making the purchase while increasingly opting for premium smartphones.”

When asked about the top preferred smartphone brand, Samsung was at the top with 33%, followed by Apple (18%), Xiaomi (11%) and OnePlus (10%). In terms of purchase channel preference, 40% prefer to purchase smartphones online, whereas 46% are comfortable taking either of the two routes. Among these 86% of respondents considering the online route, Amazon is the top preferred online channel for 48%, followed by Flipkart with 41%. The top five reasons for people to prefer Amazon are attractive offers, availability of top brands, availability of latest devices, delivery speed and reliable delivery.

Commenting on smartphone purchase preferences, Research Director Tarun Pathak said, “Consumers want the latest technology not only to experience it but also to meet their increasing requirements. This is reflected in our survey where 5G emerged as the top specification desired by consumers. 5G will continue to push smartphone demand in the coming years. Its presence has now reached lower price bands (<INR 10,000 or ~$120). Further, it is interesting to see that 20% of the respondents prefer switching to online platforms from offline modes, with the top reason for 43% of this segment being the availability of the latest devices. During the festive season, the OEMs and platforms aim to attract buyers with competitive offers. We expect this festive season to be better than the last year.”

The survey also finds that 22% of the respondents consider cashbacks/rewards as their top preferred offer when making the smartphone purchase. This is followed by bank offers (21%) and no-cost EMI (16%). And when it comes to the most preferred no-cost EMI tenure, six months is preferred by one-third of the respondents.

Disclaimer

This survey was commissioned by Amazon India to understand people’s smartphone purchase preferences this festive season. Counterpoint Research conducted this survey in Tier 1, Tier 2 and Tier 3 cities to capture a sample size of more than 1,200 respondents. An online survey was performed to collect quantitative insights from those respondents in the 18-35 age group who plan to purchase a smartphone this festive season. We expect the results to have a statistical precision of +/- 4%.

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media, and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects, and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Counterpoint Research
press(at)counterpointresearch.com

India Smart TV Shipments Declined 5% YoY in First Half of 2023

Shipments of smart TVs in the screen size range of 55” and above increased 18% YoY.
Smart TV contribution to overall TV shipments was over 91% in H1 2023.
Online channels contributed 39% of the overall shipments during the year.
Dolby Audio has become the de-facto audio technology for smart TVs.

New Delhi, Boston, Toronto, London, Hong Kong, Beijing, Taipei, Seoul – October 3, 2023

India’s smart TV shipments declined 5% YoY in H1 2023, according to the latest research from Counterpoint’s IoT Service. The decline was primarily due to the prevailing inflation and other macroeconomic headwinds in the country, which forced people to restrict their purchases to essential items.

Commenting on the market trends, Research Analyst Akash Jatwala said, “Many people bought their first smart TV during the COVID-19 pandemic, especially the 32” size. After experiencing the benefits of smart TV, they are now preferring bigger screen sizes for their living rooms, especially 43” and 55”. In H1 2023, the demand for bigger screen size smart TVs (55” and above) increased by 18% YoY. Further, consumers looking to upgrade their smart TVs will prefer a premium product due to the availability of better features.

Smart TV share in overall shipments reached its highest ever of 91% during the first half of 2023. This share is expected to go up further due to the increasing broadband penetration and the rising popularity of OTT platforms, among others.”

Source: India Smart TV Shipments Model Tracker, Q2 2023
Note: Xiaomi’s share includes Redmi’s share

Looking at the market dynamics, Senior Research Analyst Anshika Jain said, “The OTT services are helping in the growth of smart TVs due to the streaming of popular sports events, TV series, and movies, which creates stickiness among the consumers. Both OTT services and smart TVs offer a better viewing experience due to enhanced display technologies and the availability of features like Dolby Atmos and Dolby Vision.

While Dolby Audio surround sound has become the de facto audio technology for smart TVs, we are now seeing many smart TV SKUs also supporting both Dolby Atmos and Dolby Vision. Smart TVs with these features are now available in the price range starting from INR 20,000. With the upcoming festive season, rising consumer awareness, and broadcast of multiple sports events, especially the Cricket World Cup, on the OTT platforms, Dolby’s penetration is expected to increase further in the smart TV segment.”

QLED TVs are becoming popular in the mid-segment (INR 30,000-INR 50,000) as most of the brands are launching affordable QLED TVs with smaller screen sizes. QLED TV shipments increased more than 21% YoY in H1 2023 and their contribution in the overall smart TV sales is expected to rise further.

Market summary for H1 2023

Xiaomi continued to lead the smart TV market in H1 2023 with a 10% share. During this period, Xiaomi launched the X Pro series, Mi TV X series and Mi TV 5A Pro series.
Samsung took the second spot in the smart TV market in H1 2023. During the period, Samsung launched newer models in its QLED series and Crystal 4K series. Samsung also held a TV fest where it offered great deals on the S23 Ultra and The Freestyle projector and a soundbar with selected QLED and OLED models.
OnePlus was one of the fastest-growing brands and ranked third in H1 2023. The Y1S and Y1s Pro series were among its bestsellers. During the period, OnePlus launched QLED TV Q2 Pro.
LG took the fourth spot in the smart TV market in H1 2023. During this period, the company launched multiple OLED models, including a 97” model. LG also had multiple promotions, where it offered a free soundbar, additional warranty and cashback on selected models.
TCL ranked fifth in H1 2023 and was among the fastest-growing brands. During the period, TCL launched multiple new models, including in the 32” screen size, and held contests where it offered TCL products to the winners.
Acer (707%) and Sansui (148%) were also among the fastest-growing brands during the period. Both updated their portfolios and launched new models, which fetched good consumer response. With an increase in market share, Acer also entered the list of top-10 best-selling smart TV brands.
Incumbents such as Xiaomi and Samsung are facing competition in the market, as other players are expanding their reach, especially offline, and launching products at different price points with better features.
TV manufacturing is increasing in India with the increasing investments by OEMs in creating manufacturing capacity. Newer OEMs are also entering the market and partnering with leading brands to make their TVs.
Consumer demand is shifting towards premium TVs for bigger screen sizes and better features. But still, the INR 10,000-INR 20,000 price band captured the largest share of 37% in the overall smart TV market in H1 2023. The shipments for entry-level budget TVs (<INR 10,000) more than doubled as this segment caters mainly to first-time buyers.

We estimate that India’s smart TV market will see a decline of 7% YoY in 2023. The second half of the year will see an increase in smart TV shipments compared to the first half due to the festive season. We will continue to see the entry of new models and an increasing push towards the online channel. The market is likely to return to normalcy in 2024 and is expected to grow by around 10% YoY. The increasing preference for premium TVs will drive the overall market’s average selling price (ASP) higher.

Note: Xiaomi’s share includes Redmi’s share

Background

Counterpoint Technology Market Research is a global research firm specializing in products in the TMT (technology, media and telecom) industry. It services major technology and financial firms with a mix of monthly reports, customized projects and detailed analyses of the mobile and technology markets. Its key analysts are seasoned experts in the high-tech industry.

Counterpoint Research
press(at)counterpointresearch.com

Global Foldable Smartphone Shipments Up 10% YoY in Q2 2023, Set for Substantial Growth in 2024

Although overall global smartphone shipments declined in Q2 2023, global foldable shipments rose.
In H2 2023, competition in the global foldable product market is set to escalate significantly, driven by the earnest entry of Chinese companies like OPPO and HONOR.
The global foldable market is expected to experience substantial growth in 2024, driven by the introduction of entry-level foldable products.

The global foldable smartphone market increased 10% YoY in Q2 2023 to reach 2.1 million units, according to Counterpoint Research’s most recent global foldable smartphone tracker. This growth is in stark contrast to that of the global smartphone market, which showed a 9% decline in shipments during the quarter to reach 268 million units. Due to the prolonged Russia-Ukraine war and the ongoing high global inflation, the smartphone market is expected to grow sideways. Nevertheless, the foldable smartphone sector continues to exhibit robust and sustained growth.

Global and China Foldable Smartphone Shipments, Q1 2022-Q2 2023

Source: Global foldable smartphone tracker

The foldable smartphone landscape in the Chinese market presents a particularly intriguing scenario. During Q2 2023, shipments in the overall Chinese smartphone market slipped 4% YoY to reach 61.9 million units, hurt by the recent economic challenges faced by the country, which led to a reduction in consumer spending. However, the Chinese foldable smartphone market achieved notable success, surging 64% YoY to reach 1.2 million units. China now commands the largest share of the global foldable smartphone market, with a 58.6% share.

Foldable Product Launch Status in 2023: Comparison of Global and Chinese Foldable Markets

Source: Global Foldable Smartphone Insight Report

The rapid growth of the Chinese foldable market is primarily attributed to the introduction of foldable products tailored for the Chinese market, coupled with a strong demand for these products among Chinese consumers. In Q2 2023, significant momentum is building for the continued growth of the foldable market. This surge was driven by the introduction of key products such as the Huawei Mate X3, vivo X Fold 2, and vivo X Flip, primarily targeting the Chinese foldable market. Additionally, the global (including China) launch of the Motorola Razr 40 and Razr 40 Ultra, further contributed to this growth trend. In Q2 2023, China saw the launch of five new foldable products tailored for its market, while the global market outside China only saw two foldable product launches during the same period.

Counterpoint Research Senior Analyst Jene Park said, “We believe that these frequent product launches (along with the marketing effects that accompany product launches) are changing Chinese consumers’ perception of foldable products. Consequently, Chinese consumers can access a variety of foldable products more easily and frequently than any other market in the world. The continuous release of various foldable products is recognized as one of the important reasons why the Chinese foldable market has continued to grow significantly compared to other markets.”

Global Foldable Smartphone Forecast, 2023-2024

Source: Global foldable smartphone forecast

The global foldable smartphone market will undergo significant changes in H2 2023. Chinese manufacturers are expanding their presence internationally during this period, with notable releases including the HONOR Magic V2, OPPO Find N3 Flip, and the yet-to-be-named OnePlus foldable device. Notably, Samsung’s Galaxy Z Fold 5 and Galaxy Z Flip 5, considered to be some of the top-tier foldable offerings, were launched in August and are expected to capture a substantial market share in H2 2023.

Park added, “The global foldable smartphone market is set to see significant growth in the H2 2023, driven by the expansion of Chinese manufacturers. Although Samsung’s market share may dip due to increased competition, we believe that it will be a natural result. However, competition among manufacturers usually has the effect of increasing the size of the market for the product. We believe that the era of the mass foldable phone is expected to start in 2024, mainly led by Samsung and Huawei with their entry-level foldables. Entry-level foldables are expected to be priced around $600 to $700, making them more accessible to consumers.”

Apple’s Smartphone Revenue and Operating Profit Hit June-Quarter Records in Q2 2023

Apple led global smartphone revenues and operating profit with record June-quarter shares of 45% and 85% respectively.
Global smartphone revenues declined by 8% YoY and 15% QoQ to well under $90 billion in Q2 2023.
In the same period, global smartphone operating profit fell to below $13 billion, declining by 3% YoY and 27% QoQ.
Apple was the single-largest contributor to profitability, with an 85% share, up from 84% last quarter and 81% in the same quarter last year.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – Aug 4, 2023

Global smartphone market revenues declined by 8% YoY and 15% QoQ to significantly under $90 billion in Q2 2023, the lowest Q2 figure since 2020 during the height of the global pandemic-related lockdowns. The corresponding operating profit declines were 3% and 27% according to research from Counterpoint’s Market Monitor Service.

Commenting on Apple’s performance, Research Director Jeff Fieldhack noted, “Apple’s shipments declined by 3% YoY while the smartphone market declined by 9% in the same period. At the same time, its ASP increased thanks to a growing contribution of the Pro series, declining contribution of the SE series and the replacement of the Mini in iPhone 13 with a Plus in iPhone 14. As a result, while Apple’s iPhone revenue declined by 2% annually, its revenue share grew, reaching a second-quarter record of 45%. This is up by almost 3% since the same quarter of last year. Its share of global operating profits also grew by 4% since Q2 2022, reaching 85%, another second quarter record for Apple.”

The revenue decline in the overall market was caused by a shipment decline of 9% YoY combined with an ASP growth of only 1% in the same period.

Commenting on overall market dynamics, Research Director Tarun Pathak said, “The low ASP growth is mainly due to seasonality as, for instance, the second quarter is equidistant from peak iPhone demand and new iPhone launch, and sees neither of Samsung’s ultra-premium S or Z-series launches. The annual revenue decline also translated into operating profit losses for the overall market. The sequential operating profit decline suffered additionally from a changing shipment-mix, especially as the shipment share of Apple, the single-biggest contributor to total operating profit, went down by almost 4% QoQ.”

Despite ASP growth stagnating in the quarter, the premiumisation trend is likely to continue as emerging markets drive the next chapter of its growth and mid-tier brands target the premium segment and premium brands aim to sell more of their highest-priced models. Consequently, both global smartphone revenues and operating profits will see a recovery starting in H2 2023. This will support the smartphone market in the period when it struggles with lower shipments.

Feel free to reach us at press@counterpointresearch.com for questions regarding our latest research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, US, China and India.

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India Premium Smartphone Segment Grows 112% YoY in Q2 2023; India Now Among Apple’s Top 5 Markets

India’s premium smartphone segment now contributes a record 17% to its overall shipments.
With an 18% share, Samsung led India’s smartphone market for the third consecutive quarter.
Samsung also surpassed Apple to become the top premium segment (>INR 30,000 or ~ $366) brand.
Apple continued to lead the ultra-premium segment (>INR 45,000 or ~$549) with a 59% share.
vivo maintained its second position. It was the only brand among the top five to experience YoY growth.
OnePlus was the fastest-growing brand in India’s smartphone market in Q2 with 68% YoY growth.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – July 28, 2023

India’s smartphone shipments declined 3% YoY in Q2 2023 (April-June), according to the latest research from Counterpoint’s Monthly India Smartphone Tracker. Though this decline was the fourth consecutive quarterly decline, its magnitude reduced significantly, from 19% in Q1 to 3% in Q2. Base effect, pent-up demand and improving macroeconomic conditions helped the market close at less than the expected decline. However, the premium smartphone segment presented a different picture, growing 112% YoY in Q2 to contribute a record 17% to the overall shipments.

Commenting on the market dynamics, Senior Research Analyst Shilpi Jain said, “In Q2 2023, OEMs saw improvement in the inventory and demand situation ahead of the coming festive season. Aggressive measures were implemented by OEMs as well as channels during the quarter to clear existing inventory through multiple sales and promotions. At the consumers’ end, falling inflation and better growth prospects facilitated demand recovery. 5G upgrades also played a major role as OEMs kept launching 5G devices in the INR 10,000-INR 15,000 (~$122-$244) segment for a wider reach. We believe brands will be coming up with interesting launches and offers to lure consumers during the festive season and 5G will be a big growth driver here.”

Source: Counterpoint Research Market Monitor

Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes iQOO; Figures not exact due to rounding

Commenting on the competitive landscape and brand-level analysis, Research Analyst Shubham Singh said, “Samsung remained at the top position for the third consecutive quarter with an 18% market share. The brand also surpassed Apple to regain its top position in the premium smartphone segment (>INR 30,000, ~$366) after one year with a 34% share. Aggressive offers on the Z Flip3 and S21 FE, Samsung Finance+ and high demand for the latest premium A-series and F-series devices drove this growth. However, Apple continued to lead the ultra-premium segment (>INR 45,000 or ~$549) with a 59% share. India is now among Apple’s top-five markets.”

“vivo maintained its second spot in the overall market and was the only brand among the top five to experience YoY growth. Strong offline presence, growth of sub-brand iQOO in online, and multiple launches across price tiers facilitated this growth. OPPO has been consistently expanding its shipments in the higher-tier segments, with a particular focus on the upper mid-tier range (INR 20,000-INR 30,000 or ~$244-$366), showcasing its strategy to cater to diverse consumer needs. OPPO emerged as the top brand in this segment with a 21% market share. OnePlus was the fastest growing brand in India’s smartphone market in Q2 with 68% YoY growth.”

Other key insights

5G smartphone growth: In Q2 2023, 5G smartphone shipments in India crossed the 100-million cumulative mark as 5G upgrades picked up pace driven by the expansion of 5G networks and availability of affordable devices. 5G smartphone shipments grew 59% YoY during the quarter.
Premiumization trend: The premiumization trend gained momentum as the segment grew at a faster rate of 112% YoY. Rise of a value-based incentive system for retailers, aggressive promotions, availability of credit through various financing schemes, and OEMs’ focussed approach are driving premiumization in India.
Channel dynamics: Offline channel share has been growing and is expected to rise to 54% in 2023. Online-heavy brands like Xiaomi, realme and OnePlus are now emphasizing offline expansion to enhance customer engagement and ecosystem development. Samsung and Apple are also increasing their offline presence to cater to diverse consumer preferences. This shift reflects a more comprehensive approach, leveraging both online and offline channels to create a seamless and personalized customer experience.
4G feature phone growth: 4G feature phone share in the overall feature phone shipments increased to 10% in Q2 2023 driven by the JioBharat and itel Guru series’ launch. We believe this share will increase to 18% by the end of 2023. Growing demand for UPI, multiple launches from OEMs and Reliance push will help the segment grow further.
Inventory levels: The market was able to exit Q2 2023 with eight weeks of inventory as Xiaomi and realme managed to clear most of their inventory through multiple sales and promotions.
Other notable brands which grew during Q2 2023 were Apple (56% YoY), Transsion (34%), Lava (53% YoY) and Nokia (6% YoY).

The comprehensive and in-depth ‘Q2 2023 Market Monitor’ is available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

The Market Monitor research relies on sell-in (shipments) estimates based on vendors’ IR results and vendor polling, triangulated with sell-through (sales), supply chain checks and secondary research.

You can also visit our Data Section (updated quarterly) to view the smartphone market shares for World, US, China and India.

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China Sees Lowest Q2 Smartphone Sales Since 2014; vivo, OPPO, Apple Lead

Smartphone sales in China fell 4% YoY in Q2 2023. The sales continued to decline in April and May, while the 618 e-commerce festival provided a boost in June.
Among OEMs, vivo reclaimed its leadership position with a 17.7% market share. OPPO (including OnePlus) and Apple were in a tie in Q2, each capturing 17.2%.
Apple, Huawei and realme managed to achieve positive YoY growth. Huawei’s smartphone sales grew 58% YoY driven by a bigger product portfolio.
Apple’s sales increased 7% YoY as its position in the premium segment remained unchallenged.

Beijing, New Delhi, Hong Kong, London, San Diego, Buenos Aires, Seoul – July 28, 2023

China’s smartphone sales fell 4% YoY in Q2 2023, reaching the lowest Q2 sales figure since 2014, according to Counterpoint’s Market Pulse Service. The macro headwinds, both internal and external, took a toll on Chinese consumer sentiment.

In April and May, smartphone sales remained weak, while the 618 e-commerce festival provided a boost in June, resulting in a 25% MoM growth. However, despite the sequential increase in June, the relatively weak performance observed during the 618 sales period (June 1 to June 18), with an 8% YoY decline according to Counterpoint’s 618 Sales Period Thematic Report, ultimately led to a 6% YoY decline for the full month of June.

Source: Counterpoint Market Pulse Service Notes: OPPO includes OnePlus; Xiaomi includes Redmi; vivo includes iQOO; Figures may not add up to 100% due to rounding

Among OEMs, Apple, Huawei and realme managed to achieve positive YoY growth. Apple maintained excellent sales performance with 7% YoY growth as its position in the premium segment remained unchallenged. The premium segment has proven to be more resilient during economic headwinds. Even within Apple, the sales share of the more premium Pro models grew from around one-third in Q2 2022 to around half in Q2 2023.

Sales of OEMs excluding Apple dropped 5.5% YoY, with all major Android OEMs except Huawei and realme seeing YoY declines. In terms of market share, vivo reclaimed its leadership position with a 17.7% share driven by a strong performance of the Y35 series, Y8 series and the newly launched S17 series. OPPO (including OnePlus) and Apple were in a tie in Q2, each capturing a 17.2% share.

Notably, OnePlus managed to maintain its strong growth momentum from Q1 2023 and achieved YoY growth of 254% in Q2 on the back of channel support from OPPO. On the other hand, OnePlus played an important role in compensating for OPPO’s limited online presence by using its online-centric business model to effectively tap into the segment.

Huawei’s smartphone sales grew 58% YoY in Q2 2023 as the brand managed to resume normal product launches this year. Leveraging its well-established brand image and strong offline footprint, especially in top-tier cities, Huawei witnessed a surge in sales after resolving its product shortages.

HONOR and Xiaomi saw their market shares drop in Q2 2023 on escalating competition. But HONOR has been catching up in offline presence in China.

With a disappointing performance in H1 2023, we have revised downwards our 2023 forecast for China’s smartphone market – from flat growth to a low single-digit YoY decrease. While we anticipate an improvement in smartphone sales during H2 when compared to H1, a strong rebound does not seem to be on the horizon as challenges that affected the performance in H1 are likely to persist.

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Counterpoint Research

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Global Smartphone Market Declines 14% YoY in Q1 2023; Apple Records Highest-Ever Q1 Share

The global smartphone market declined by 14% YoY and 7% QoQ to record 280.2 million unit shipments in Q1 2023.
Samsung replaced Apple as the top smartphone player in Q1 2023, driven by its mid-tier A Series and the recently launched S23 series.
Apple’s YoY shipment decline was the least among the top five brands. Consequently, it recorded its highest-ever Q1 share of 21%.
Global smartphone revenues declined by 7% YoY to around $104 billion. Apple, Samsung, Xiaomi increased their Average Selling Prices YoY.

London, New Delhi, Hong Kong, Seoul, Beijing, Denver, Buenos Aires – May 5, 2023

The global smartphone market faced further contraction in the post-holiday-season quarter with shipments declining by 14% YoY and 7% QoQ to 280.2 million units in Q1 2023, according to the latest research from Counterpoint’s Market Monitor service.

Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
Note: OPPO Includes OnePlus

Commenting on overall market dynamics, Senior Analyst Harmeet Singh Walia said, “Smartphone shipments declined further in Q1 2023 following the weakest holiday-season quarter since 2013, as the slower-than-expected recovery in China was marred by alarming bank failures on both sides of the Atlantic further weakening consumer confidence in the face of unrelenting market volatility. The smartphone market was also hit by some major brands supplying fewer new devices to a market struggling with high inventories at a time when consumers are choosing to renew less often, but with more durable smartphones when they do buy.”

Consequently, global smartphone revenue and operating profit also declined, although not as much as shipments. This was due, in part, to the lower-than-usual decline in Apple’s shipments, to 58 million units in Q1 2023. Apple thereby managed to capture nearly half of all smartphone revenues. While Samsung’s shipments declined 19% YoY despite growing by 4% QoQ to 60.6 million units, the launch of the Galaxy S23 series enabled Samsung’s ASP to increase to $340, up 17% YoY and 35% QoQ, which in turn contributed to global revenues falling relatively less. Apple and Samsung also remain the most profitable brands, together capturing 96% of global smartphone operating profits.

Source: Counterpoint Research Market Monitor Preliminary Data, Q1 2023
Note: OPPO Includes OnePlus

Commenting on Apple’s performance, Research Director Jeff Fieldhack said, “Apple outperformed the market due to several factors. Firstly, the stickiness of its ecosystem prevents its customers from choosing a cheaper smartphone even in times of economic difficulty. Secondly, with sustainability becoming a priority for many, not only has Apple captured nearly half of the secondary market, it is also attracting users who are willing to spend more for longer-lasting devices. Thirdly, it is the preferred brand for Gen Z consumers in the West and is thereby positioning itself for sustained success. At the same time, it has been filling the void left by Huawei in China’s premium market. So, Apple is able to weather economic and other fluctuations better than its rivals while enjoying unflinching loyalty. This also meant Apple was able to meet the demand for the iPhone 14 series which spilt over Q4 2022, when it had problems at its Zhengzhou factory, rather than that share dissipating or transferring to rivals.”

Besides Samsung and Apple, the biggest global smartphone brands from China, Xiaomi, OPPO* and vivo, will have to wait longer for their shipments to rebound as each of them experienced double-digit annual declines in Q1 2023. This was due to a seasonal slowdown in China at a time when the country’s economic recovery is taking longer than expected. OPPO* has recently been facing challenges in overseas markets too. It has had to exit the German market after losing a patent lawsuit with Nokia. At the same time, the three brands’ revenues and profitability have struggled too. While OPPO* and vivo saw both annual shipment and ASP declines, leading to double-digit revenue declines, Xiaomi’s slight annual ASP growth could also not prevent a double-digit revenue decline in Q1 2023.

The smartphone market as a whole, too, is likely to struggle for the next couple of quarters. Commenting on the near-term outlook, Research Director Tarun Pathak said, “The persistent issues affecting the smartphone market are unlikely to abate anytime soon. Moreover, the recent decision by OPEC countries to cut oil production may lead to higher inflation rates, causing a reduction in consumers’ spending power. As a result, even if the decline in smartphone shipments stabilises, a significant recovery is unlikely before the year-end holiday quarter.”

*OPPO includes OnePlus

You can also visit our Data Section (updated quarterly) to view the smartphone market share for World, US, China and India.

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Prachir Singh

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India Smartphone Market Records Highest Ever Q1 Decline of 19%, 5G Smartphones Contribution at 43%

Q1 2023 (January-March) was the third consecutive quarter to see a decline in India’s smartphone shipments.
5G smartphones’ contribution to total smartphone shipments reached a record of 43%.
With a 20% share, Samsung led the Indian smartphone market for the second consecutive quarter. It was also the top 5G brand.
vivo captured the second spot and became the leading brand in the affordable premium segment (INR 30,000-INR 45,000, ~$370-$550)
Apple continued to lead the premium and ultra-premium segments, with strong growth in offline channels.
OnePlus was the fastest growing brand, followed by Apple.

New Delhi, Hong Kong, Seoul, London, Beijing, San Diego, Buenos Aires – April 27, 2023

India’s smartphone shipments declined 19% YoY in Q1 2023 (January-March) to reach over 31 million units, according to the latest research from Counterpoint’s Market Monitor service. This was the highest ever Q1 decline seen by India’s smartphone market, besides being the third consecutive quarterly decline. Sluggish demand, high inventory build-up carried over from 2022, growing consumer preference for refurbished phones and pessimistic channel view of the market contributed to this decline.

Commenting on the market dynamics, Senior Research Analyst Shilpi Jain said, “We are observing a change in consumer behaviour – demand is now concentrated around promotional periods. The beginning of the quarter saw a surge in demand across channels around the Republic Day sales period. However, demand dropped significantly after the sales period. Channel players are now focussing on getting rid of existing inventory instead of creating a fresh inventory of new models. It is crucial for OEMs to align their strategies with changed consumer and market dynamics. The quarter’s silver lining came from 5G smartphones, whose contribution (43%) crossed 40% for the first time, registering 23% YoY growth as consumers kept upgrading to 5G devices. We believe these situations will remain similar in Q2 2023 as well with growth coming back in the second half of the year owing to faster 5G upgrades, easing macroeconomic pressure and festive season.”

Commenting on the competitive landscape and price band analysis, Senior Research Analyst Prachir Singh said, “Premiumization trend is becoming stronger with each passing quarter. The premium segment’s share almost doubled in Q1 2023 compared to Q1 2022. 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. The premium segment’s growth is reducing the mid-tier share as consumers are upgrading to higher-priced smartphones. The sub-INR 10,000 price band continued to decline in Q1 2023, with its shipments falling 9% YoY. This segment is suffering declining demand due to an elongated replacement period, declining feature phone-to-smartphone migration and lower presence of hero models.”

Source: Counterpoint Research Market Monitor, Q1 2023
Note: Price band is based on retail price

Source: Counterpoint Research Market Monitor, Q1 2023
Notes: Xiaomi includes POCO; OPPO excludes OnePlus; vivo includes IQOO; Figures not exact due to rounding

Market Summary:

Samsung maintained its top position in the Indian smartphone market for the second consecutive quarter with a 20% share in Q1 2023. It also remained the leading brand for 5G shipments, accounting for a 24% share. The new 5G-capable A series performed well in the offline market, contributing 50% of the shipments. Samsung’s ultra-premium segment (>INR 45,000, ~$550) grew 247% YoY in Q1 2023 driven by the successful launch of the S23 series and financing options.
vivo also maintained its second position in Q1 2023 with a 17% market share. Although there was a 3% YoY decline, the company’s robust omnichannel presence and cost-effective pricing helped the OEM in maintaining its position. vivo was the leading brand in the affordable premium segment (INR 30,000-INR 45,000, ~$370-$550) with a 40% share driven by the V series.
Xiaomi experienced a significant drop from Q1 2022, falling to the third spot during Q1 2023 with a 16% share. It suffered a 44% YoY decline, which is the largest the brand has ever recorded. The decline was due to weak demand in the sub-INR 10,000 (~$245) segment, more dependence on online channels even when demand is higher in offline channels, and a confusing portfolio. The Redmi Note 12 series received a positive response from consumers, contributing to over 14% of Xiaomi’s total shipments.
OPPO took the fourth position in India’s smartphone market, recording 9% YoY growth with a 12% share. The brand has been consistently expanding its shipments in the high-tier segments, with a particular focus on the upper mid-tier range (INR 20,000-INR 30,000), where it saw the highest growth among all brands, registering 144% YoY growth driven by the F series.
realme saw a 52% YoY decline in Q1 2023, resulting in the brand slipping to fifth place with a 9% share. realme continued to face challenges such as inventory build-up and unfavourable market conditions in the sub-INR 10,000 segment. It is now focusing on offline retail to expand consumer base. The brand also launched the C55 series, which did well during the quarter, accounting for 11% of its shipments.
Transsion Group brands itel, Infinix and TECNO accounted for 16% of India’s handset market and secured the first spot there in Q1 2023 with 19% YoY growth. itel captured 3^rd spot in India handset market registering 23% YoY growth. TECNO captured the fourth spot in the sub-INR 10,000 smartphone segment driven by strong demand for the Spark Go 2023. Infinix was the fourth fastest-growing brand with 27% YoY growth.
OnePlus was the fastest growing brand with 72% YoY growth in Q1 2023 driven by the strong demand for its OnePlus Nord CE 2 Lite and newly launched OnePlus 11 series. OnePlus’ Nord CE 2 Lite 5G was the best-selling model in Q1 2023. It captured the second spot in the premium segment (INR 30,000-INR 45,000 or ~$370-$550) with a 30% share. Furthermore, the brand has been actively expanding its offline presence by opening experience stores in various cities.
Apple grew 50% YoY and grabbed a 6% share in Q1 2023. The brand maintained its lead in the overall premium segment (>INR 30,000) as well as in the ultra-premium segment (>INR 45,000, ~$550) with 36% and 62% shares respectively. Its new financing scheme with HDB and promotions on the latest iPhone 14 series fueled the growth in offline channels. The recent opening of its own retail stores in the country will further strengthen Apple’s brand image and lead to better growth avenues not just for iPhones but for the whole Apple ecosystem.
Among local brands, Lava did well with its refreshed portfolio in the sub-INR 10,000 segment. Lava continues to offer the cheapest 5G smartphone (Blaze 5G). It was also the third fastest-growing brand in Q1 2023 with 29% YoY growth.

The comprehensive and in-depth Q1 2023 Market Monitor is available for subscribing clients.

Feel free to contact us at press@counterpointresearch.com for questions regarding our latest research and insights.

You can also visit our Data Section (updated quarterly) to view the smartphone market shares for World, US, China and India.

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India Smart TV Shipments Grew 28% YoY in 2022; Online Volume 33% of Total

Indian brands showed the fastest YoY growth in 2022 and had a share of 24% in smart TV shipments.
Smart TV contribution to overall TV shipments was over 90%, the highest ever.
The average selling price (ASP) dropped by 8% YoY in 2022.
Online channels contributed 33% of the overall shipments during the year.
MediaTek chips captured around three-fifths of the total TV market.
Non-smart TV shipments declined 24% YoY.

New Delhi, Boston, Toronto, London, Hong Kong, Beijing, Taipei, Seoul – April 04, 2023

India’s smart TV shipments grew 28% YoY in 2022, according to the latest research from Counterpoint’s IoT Service. The growth for the year was primarily driven by strong shipments during the festive season in the third quarter, multiple new launches, discounts and promotions, and the demand for bigger screen-size TVs in the lower price tier. For Q4 2022, the growth was almost flat at 2% YoY due to a slowdown in demand after the festive season.

Commenting on the market trends, Research Analyst Akash Jatwala said, “Consumers are preferring bigger screen sizes, especially 43”, due to which the smart TV shipments in this display size grew 29% YoY in 2022. This size has also started trickling down to the budget price range (INR 20,000-INR 30,000 or ~$243-$364). Dolby integration is another most sought-after feature and is available in lower-price TVs too. Dolby Audio support in the INR 10,000-INR 20,000 (~$121-$243) price band increased 37% YoY and was available in about 41% of the smart TVs shipped in 2022. On the operating system side, Google TV grew multifold and was available in 4% of the smart TVs shipped during the year. Many brands are launching TVs with Google TV in the mid-segment (INR 30,000 – INR 50,000). In terms of country of origin, Indian brands showed the fastest growth and had a share of 24% in smart TV shipments during the year, whereas global and Chinese brands had 40% and 36% shares respectively.”

Looking at the market growth, Senior Research Analyst Anshika Jain said, “OnePlus, Vu, and TCL were among the fastest-growing brands in the smart TV segment in 2022. Xiaomi led the overall smart TV market with an 11% share, followed by Samsung and LG. Smart TV shipments in the INR 20,000-INR 30,000 price band grew 40% YoY to reach a 29% share. The average selling price (ASP) declined 8% YoY to around INR 30,650.”

Jain added, “Smart TV contribution to overall shipments reached its highest ever of 90% during the year. It is expected to go up further due to more launches in the sub-INR 20,000 price range and non-smart-TV-to-smart-TV migration. Non-smart TV shipments declined 24% YoY in 2022. Online channels increased their contribution to the total shipments to 33% during the year.”

Source: India Smart TV Shipments Model Tracker, Q4 2022

Notes: Xiaomi’s share includes Redmi’s share

Market summary for 2022

Xiaomi continued to lead India’s smart TV market in 2022 with an 11% share. The Mi TV 5A series and Redmi Smart TV series, especially the 32” model, were among the volume drivers for the brand. Xiaomi has updated its PatchWall with some new features and enhancements, such as content search across multiple OTT platforms, Live TV with more channels, and better recommendation with IMDB integration.
Samsung took the second spot. In 2022, Samsung launched new models in its T4000 series in 32” and 43” sizes. Apart from this, it also launched new QLED models in the >INR 50,000 price range. During the year, Samsung had promotional events like Big TV Days and Big TV Festival where it offered discounts and smartphones with selected models, with EMIs starting at a lower cost.
LG took the third spot in the smart TV market in 2022. During the year, LG launched new models in the 32” segment, its volume driver. Besides, it also launched premium QNED TVs in India. During the sales events, LG offered no-cost EMIs on selected models, one-year complimentary product insurance, and cashback.
OnePlus was one of the fastest-growing brands in 2022, growing 80% YoY and ranking fourth. OnePlus captured the second position in the <INR 30,000 price segment. The Y1 and Y1S were among its bestsellers. During the year, OnePlus launched the Y1S Pro series which saw a great response.
TCL ranked fifth during the year and was among the fastest-growing brands in 2022. During the year, TCL launched many new models, including QLED TVs, across different price segments. Some of the prominent series were the C635, P635 and P735.
Sony was among the preferred brands in the premium segment. During the year, Sony launched new budget models W820K and W830K. The brand also launched new versions of its OLED series. Most of the launches during the year came with Google TV. Sony ranked third in the premium segment (>INR 50,000).
96% of the market is being driven by LED TVs, while many brands such as TCL, VU, Sansui, Hisense, Thomson, Blaupunkt and Kodak have started launching newer QLED TV models in the >INR 30,000 price range and >50” screen size.
More than 99% of the TVs are assembled locally, with some high-end TVs being imported.
MediaTek chips had around a three-fifths share of the total TV market during the year.
Smart TVs are coming with newer features, such as integrated soundbars from leading players, video call facility, higher refresh rate for immersive gaming experience, and free Live TV channels.

Source: India Smart TV Shipments Model Tracker, Q4 2022

Notes: Xiaomi’s share includes Redmi’s share

Market summary for Q4 2022

Smart TV shipments saw flattish growth of 2% YoY owing to the slowdown after the festive season.
Xiaomi led the market with a 9% share, followed by Samsung and OnePlus at 9% and 8% respectively.
Global brands (excluding Indian and Chinese) led the market with a 39% share, followed by Chinese brands at 32% and Indian brands at 29%.
Smaller-screen TVs of 32” constituted most of the volume (47%), as they were available in the sub-INR 15,000 price segment.
OnePlus, TCL, and VU were among the fastest-growing brands in the sub-INR 30,000 price range due to the availability of newer models, and their popularity among customers.

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