A total of 45 million devices were shipped in the quarter, lower than 51 million devices a year earlier, showed a report by market tracker Counterpoint Research. It attributed the drop in shipments to weak demand and large unsold stocks.

Tarun Pathak, research director at Counterpoint India, said record high inventory of above 10 weeks at the start of the September quarter, combined with macroeconomic headwinds and flat consumer demand, led to the “first ever” drop in smartphone shipments in the festive quarter of a year.

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Meanwhile, the average selling price (ASP) of smartphones rose 4% to over ₹20,000 in the September quarter, adding to an increase in the previous four quarters. This January, Counterpoint’s year-end report for the Indian smartphone market pegged the ASP at close to ₹17,000, which has now crossed ₹20,000. While Counterpoint pegged a 4% rise based on the dollar value of new phone shipments, the average smartphone price saw a rupee rise of over 20% from a year earlier, amid the sharp fall in the currency against the US dollar.

Pathak said the rise in smartphone ASPs will likely continue until the June quarter of 2023. “This is a reverse trend of sorts, where the ASP will continue to rise upward, and shipments will either remain flat or decline annually. This could start changing from the September quarter next year, when a brands start offering affordable 5G phones in the country,” he said.