According to Worldwide Quarterly Mobile Phone Tracker report by International Data Corporation (IDC), India’s smartphone market shipped 34 million smartphones in the first quarter (Q1) of 2024, with 11.5 per cent growth year-on-year (YoY), making it third consecutive quarter of growth in shipments.
As per the report, smartphone average selling price (ASPs) remained flat YoY and quarter-on-quarter (Q-o-Q) at $263, ending the streak of strong ASP rise for last several quarters. The entry level (sub $100) segment declined by 14 per cent YoY to 15 per cent share, down from 20 per cent in 2023. Xiaomi continued to lead this space, followed by Poco (2nd) and Itel (3rd).
The report added that shipments to mass budget (more than $100 less than $200) segment grew by 22 per cent YoY, reaching 48 per cent from 44 per cent in 2023, while the top three brands were Vivo, Xiaomi and Samsung, making up 53 per cent share in this segment.
In addition, the share of entry-premium (more than $200 less than $400) segment reached 23 per cent, up from 20 per cent growing by 25 per cent YoY. OPPO and Realme gained a significant share, making up almost 30 per cent share in this segment. The mid-premium segment (more than $400 less than $600) segment declined by 46 per cent in unit terms to a three per cent share, down from six per cent in 2023. OnePlus led with a 38 per cent share, followed by Vivo and OPPO. Further, the premium segment (more than $600 less than $800) held a two per cent share and declined by 21 per cent in unit terms, wherekey models were iPhone 13, Galaxy S23FE/S23, iPhone 12 and OnePlus12. Meanwhile, Apple’s share declined YoY to 45 per cent, while Samsung was a close second with a 44 per cent share, up from 16 per cent in 2023. The super-premium segment (more than $800) grew the highest with 44 per cent growth, with its share up from seven per cent to nine per cent. The iPhone14/15/14 Plus/15 Plus together accounted for 64 per cent shipments, followed by Galaxy S24/S24 Ultra/S23/S24+ with 25 per cent share. Overall, Apple led the segment with a share of 69 per cent, followed by Samsung at 31 per cent.
As per the report, 23 million 5G smartphones were shipped in the quarter. The share of 5G smartphone shipments increased to 69 per cent, up from 46 per cent in 1Q23, while 5G smartphone ASPs dropped to $337, a decline of 21 per cent YoY in 1Q24. Within 5G, shipments of the mass budget (more than $100 less than $200) segment grew three times to reach 46 per cent share. Xiaomi’s Redmi 13C, Vivo’s T2x, Samsung’s Galaxy A15, Vivo’s Y28 and Apple’s iPhone14, were the highest shipped 5G models in 1Q24. Shipments to online channels grew by 16 per cent YoY, and its share increased to 51 per cent in 1Q24 compared to 49 per cent in 1Q23. Poco, Vivo and Motorola registered more than 65 per cent YoY shipment growth in online channel.
Overall, Vivo emerged as the top brand, replacing Samsung, as it continued to build its portfolio across price segments/channels and support offline partners. Amongst the top ten brands, Motorola registered the highest growth, led by affordable launches, Samsung, despite new lineup, witnessed declining shipments.
Furthermore, Apple, with an ASP of $953, had a record first-quarter shipment, growing by 19 per cent YoY. Price discounts, special deals on eTailer platforms, and attractive financing options led to this consistent growth for Apple beyond the festive season. In addition, iPhone 14/15 made up 56 per cent shipments for Apple.
Commenting on the report, Upasana Joshi, senior research manager, client devices, IDC India, said, “Several new launches across multiple price segments happened during the quarter, coupled with increased promotional activities, particularly around premium offerings. Brands continued their focus on microfinancing schemes to drive affordability. eTailers organised several sales events and offered discounts on models nearing their end-of-life (EOL), resulting in increased demand and lean inventory.”
Meanwhile, Navkendar Singh, associate vice president, devices research, IDC, said, “First few months of the year have provided momentum for smartphone market in India. However, the second half of the year will be crucial. IDC estimates a modest overall annual growth in the mid-single digits for 2024. Challenges around attracting first-time smartphone users and mitigating the impact of second-hand market continue to restrict market growth. Notably, the market’s concentration among the top brands is weakening, with the long tail of smaller brands and sub-brands gaining volume. The share of top five brands has dropped to 65 per cent from 69 per cent in 2023.”
