In the first half of 2024, the Indian smartphone market witnessed shipments of 69 million units, reflecting a 7.2% YoY growth. In the second quarter of 2024 (2Q24), 35 million smartphones were shipped, reflecting a 3.2% YoY growth. Despite these positive figures, the market faces challenges that could hinder a rapid YoY recovery, according to the International Data Corporation (IDC) Worldwide Quarterly Mobile Phone Tracker.
India Smartphone Market Report: H1 2024 Analysis
Market Trends and Seller Strategies
The second quarter falls into the critical festive sales period that extends into November. During this time, vendors are actively clearing old inventory and launching new models, especially in the mid-range and premium segments. This strategy primarily involves China-based manufacturers aiming to capitalise on the monsoon sales period in July and August, as highlighted by Upasana Joshi, Senior Research Manager, IDC India.
Performance by Segment
Average Selling Prices (ASP): ASPs closed at $248, up 2.8% year over year but down 5.6% from the previous quarter.
- Entry Level Segment (Under $100): This segment saw a significant 36% YoY decline, reducing its market share from 22% to 14%. Leading brands in this segment included Xiaomi, POCO, and realme.
- Mass Budget Segment ($100-200): Shipments in this segment grew by 8% YoY, with its share increasing from 42% to 44%. Major players included Xiaomi, realme, and vivo, which captured 60% of this segment.
- Entry-Premium Segment ($200-$400): This segment witnessed the highest growth with a 42% YoY increase, with its share increasing from 22% to 30%. OPPO, vivo, and Samsung contributed greatly by holding nearly 60% of this segment.
- Mid-Premium Segment ($400-600): Shipments in this segment fell by 25% and its share fell from 5% to 4% a year ago. Vivo took the lead with a 25% market share, followed by OnePlus and OPPO.
- Premium Segment ($600-$800): The market share of this segment decreased by 37% on a per-unit basis to 2%. Prominent models included the iPhone 13, Galaxy S23FE, iPhone 12 and OnePlus 12. Apple increased its share to 61%, while Samsung's share increased from 21% to 24%.
- Super Premium Segment ($800+): This segment grew by 22% and increased its share from 6% to 7%. iPhone 15/15 Plus/14/14 Plus accounted for 77% of shipments, while Galaxy S24/S24 Ultra had an 11% share. Apple led this segment with 83% share, followed by Samsung with 16%.
5G Smartphone Market
5G Shipments: 27 million 5G smartphones were shipped in the market, and their share increased significantly from 49% in Q2 2023 to 77%.
Gizchina News of the Week
- ASPs of 5G smartphones decreased by 22% YoY to $293.
- Shipments in the mass budget segment ($100-200) increased by 2.5 times, reaching a share of 45%.
- Notable 5G models included Xiaomi's Redmi 13C, OPPO's F25 Pro, realme's 12x, Xiaomi's Redmi 12, and realme's C65.
Channel Performance
Online Channels: Shipments via online channels increased by 8% YoY, increasing its share from 47% to 50%. Motorola entered the top five online retailers in fourth place, while vivo rose to second place with the support of its T-series models.
Offline Channels: Shipments through offline channels decreased by 2% YoY due to severe heat waves in India.
Brand Performance and Appearance
live It continued to lead the market for the second consecutive quarter with new launches across various price segments, including the Y-series, mid-to-high-end V-series, and the flagship X Fold 3 Pro. Motorola showed the highest growth, Nothing It achieved the second highest growth among all brands.
Looking ahead, the trend towards premium smartphones driven by Apple and Samsung, coupled with rising device costs, is pushing China-based brands to look to expand beyond the mass segment. While the entry-level premium segment is expected to continue growing, the entry-level segment is likely to face ongoing challenges despite efforts to offer affordable 5G smartphones.
Navkendar Singh, Vice President of Device Research at IDC, said that marketing efforts for GenAI smartphones are expected to intensify and significant promotional activities are expected.