According to a report by Counterpoint, India’s smartphone shipments fell 2 per cent year-on-year (YoY) in the second quarter (Q2) of 2024 (April-June). It was driven by a heatwave, seasonal slowdown, and reduced demand from Q1 2024.
In response, original equipment manufacturers (OEMs) held sales events in Q2 to clear inventory, resulting in lower sell-in and a period of degrowth.
Commenting on the report, Shilpi Jain, senior research analyst, Counterpoint, said, “Heatwave conditions in various regions led to lower footfalls in offline channels and delayed smartphone purchases as consumers prioritised appliances like air conditioners and refrigerators. This reduced demand caused an inventory build-up. However, summer sales at online channels, good harvest and aggressive promotions towards the end of the quarter provided relief to OEMs, helping close the quarter on a better note than at the beginning. During the quarter, Xiaomi reclaimed the top spot with a 23 per cent YoY growth in its shipments, driven by a streamlined and focused portfolio that spans from the entry-level to affordable premium segments. To further solidify its position, the company employed a strategy to push flagship handsets, improve marketing and expand distribution channels.”
Meanwhile, Shubham Singh, research analyst, Counterpoint, said, “In Q2 2024, India’s smartphone market achieved its highest ever Q2 value, driven by the ongoing trend of premiumisation. Consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes. This resulted in a 24 per cent YoY growth in the ultra-premium (more than Rs 45,000) segment. Samsung led in value terms for the second consecutive quarter, capturing over one-fourth of the market. Its new Fold 6 series is expected to sustain this leadership. With the brand focusing on value over volume, its ultra-premium segment (more than Rs 45,000) grew by 99 per cent YoY in Q2 2024. Vivo took the second spot, driven by its higher-priced models like the V30 series with enhanced cameras. Apple ranked third in value terms. But it is expected to rebound in the next quarter, driven by the recent price cuts across the entire range of iPhones.”
