The Indian smartphone market shipped 69 million units in the first half of 2024, reflecting a 7.2% year-over-year (YoY) growth. In the second quarter of 2024 (2Q24), 35 million smartphones were shipped, marking a 3.2% YoY growth.
Despite this being the fourth consecutive quarter of YoY shipment growth, sluggish consumer demand and rising average selling prices (ASPs) are dampening a swift annual recovery, according to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker.
Market Trends and Vendor Activities
The latter half of the second quarter precedes the crucial festive sales period, extending until November.
Vendors have been clearing old inventory and introducing new models, particularly in the mid-premium and premium segments, predominantly from China-based manufacturers.
This is aimed at capturing the monsoon sales in July and August, as noted by Upasana Joshi, Senior Research Manager at IDC India.
Key Highlights for 2Q24
ASPs and Segment Performance
Average Selling Prices (ASPs): ASPs rose by 2.8% YoY but fell 5.6% quarter-over-quarter to US$248.
Entry-Level Segment (sub-US$100): This segment saw a significant decline of 36% YoY, reducing its share to 14% from 22% a year ago. Xiaomi led this segment, followed by POCO and realme.
Mass Budget Segment (US$100–US$200): Shipments grew by 8% YoY, with its share increasing to 44% from 42%. Top brands in this segment included Xiaomi, realme, and vivo, which together accounted for 60%.
Entry-Premium Segment (US$200–US$400): This segment’s share rose to 30% from 22%, experiencing the highest growth of 42% YoY. OPPO, vivo, and Samsung gained substantial share, comprising nearly 60% of this segment.
Mid-Premium Segment (US$400–US$600): Shipments declined by 25%, reducing its share to 4% from 5% a year ago. Vivo topped the segment with a 25% market share, with OnePlus and OPPO following.
Premium Segment (US$600–US$800): This segment’s share was 2%, down by 37% in unit terms. Key models included iPhone 13, Galaxy S23FE, iPhone 12, and OnePlus 12. Apple’s share increased to 61%, and Samsung’s share rose to 24% from 21%.
Super-Premium Segment (US$800+): This segment grew by 22%, increasing its share to 7% from 6%. The iPhone 15/15 Plus/14/14 Plus accounted for 77% of shipments, with Galaxy S24/S24 Ultra holding an 11% share. Apple led with 83% of the share, followed by Samsung with 16%.
5G Smartphone Market
5G Shipments: 27 million 5G smartphones were shipped, with their share rising to 77% from 49% in 2Q23.
- ASPs for 5G smartphones decreased by 22% YoY to US$293.
- Shipments in the mass budget segment (US$100–US$200) grew 2.5 times, capturing a 45% share.
- Prominent 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 grew by 8% YoY, increasing their share to 50% from 47%.
- Motorola entered the top five online vendors in fourth place, while vivo climbed to second, driven by its T series models.
- Offline channel shipments declined by 2% YoY due to severe heatwaves in India.
Brand Performance and Future Outlook
- vivo led the market for the second consecutive quarter with launches across various price segments, including the Y series, mid-premium V series, and flagship X Fold 3 Pro.
- Motorola showed the highest growth, while Nothing achieved the second-highest growth among all brands.
Future Trends
The trend towards premium smartphones, driven by Apple and Samsung, combined with rising device costs, is pushing China-based brands to expand beyond the mass segment.
The entry-premium segment is expected to grow, while the entry-level segment will continue to face challenges despite efforts to introduce affordable 5G smartphones.
Marketing around GenAI smartphones is anticipated to become more pronounced, with significant promotional activities expected, as noted by Navkendar Singh, Associate Vice President, Devices Research at IDC.