India’s smartphone shipments decreased by 2% year-over-year (YoY) in Q2 2024 (April-June), according to Counterpoint Research, following a notable increase in Q1 2024.
This decline was attributed to several factors, including a heatwave, a seasonal slump, and slower demand from Q1 2024. As a result, OEMs held sales events to reduce inventory, leading to a drop in shipments and a period of reduced growth, the report added.
Market Dynamics
Counterpoint Research’s Senior Analyst, Shilpi Jain, noted that the heatwave in various regions reduced foot traffic in physical stores and delayed smartphone purchases as consumers prioritized cooling appliances like air conditioners and refrigerators. This shift in priorities led to an accumulation of unsold inventory.
Despite the challenges, online summer sales, a good harvest, and aggressive promotions towards the end of the quarter provided some relief to OEMs, leading to an improved market situation by the end of Q2.
Brand Performance
Xiaomi
Reclaimed the top position with a 23% YoY growth in shipments. This success was attributed to a streamlined product portfolio that includes entry-level to affordable premium segments.
Xiaomi also focused on promoting flagship devices, enhancing marketing strategies, and expanding distribution channels.
Nothing
Emerged as the fastest-growing smartphone brand in H1 2024, with an impressive 567% YoY growth. This growth was driven by new models like the mid-range Phone (2a) and budget-friendly CMF Phone 1.
Nothing has expanded in India with 300 service centers, including exclusive ones in Mumbai, Delhi, and Bengaluru, and plans to open two more by year-end, while its offline retail locations have grown from 2,000 to 5,000.
The company shipped over 4 million units globally and reached over $500 million in revenue last year. Their new phone, Phone (2a) Plus, launching today, continues their growth trajectory.
Other Trends Q2 2024
- Motorola: Saw an 88% YoY growth, attributed to budget-friendly models and a focus on CMF (Color, Material, Finish) design elements.
- POCO: The Xiaomi sub-brand was the fastest-growing in the INR 10,000-INR 15,000 (~$120-$180) segment, with a 318% YoY increase, driven by budget-friendly M-series 5G models.
- realme: Experienced a 2% YoY growth, expanding its portfolio with new P-series models and reintroducing the GT series.
5G Adoption
In Q2 2024, 5G smartphone shipments reached a record 77% of the total market share. This growth was driven by decreasing average selling prices (ASPs), with OEMs launching more affordable 5G models, including Lava’s Yuva 5G.
Chipset Market
- MediaTek: Led the Indian smartphone chipset market with a 54% share.
- Qualcomm: Dominated the premium segment with a 33% share.
Price Segment Growth
The INR 20,000-INR 30,000 ($240-$360) and above INR 45,000 ($540) price bands saw the fastest growth rates at 25% and 24% YoY, respectively.
Brand Value Dynamics
- Samsung: Maintained its lead in value terms, capturing over 25% of the market. The Z Fold6 series is expected to sustain this leadership. Samsung’s ultra-premium segment grew by 99% YoY in Q2 2024.
- vivo: Secured the second position, driven by higher-priced models like the V30 series with enhanced cameras.
- Apple: Ranked third in value terms but is anticipated to rebound in the next quarter due to recent price reductions across its iPhone range.
Research Analyst Shubham Singh highlighted that Q2 2024 saw the highest value ever for the quarter due to premiumization trends.
Consumers increasingly upgraded to higher-value smartphones, supported by better trade-in values and financing options. This trend resulted in a 24% YoY growth in the ultra-premium segment (>INR 45,000), he added.
Commenting on the Nothing’s performance, Carl Pei, Co-founder and CEO of Nothing, said,
The first three years were focused on establishing our operational foundations and navigating one of the world’s most competitive industries. This year, our focus shifts to scaling by expanding our smartphone portfolio and applying Nothing’s advanced design and user experience innovations to new market segments. While market share should stem from creating exceptional products rather than being the primary goal, I’m excited about this growth. It reflects the successful execution of our strategy. The most thrilling aspect is that this success is driving Nothing’s innovation, which will remain a key focus for 2025.