According to a report by IDC, the Indian smartphone market shipped 69 million smartphones in the first half (H1) of 2024, with 7.2 per cent growth year-over-year (YoY).
In the second quarter (Q2) of 2024, the market shipped 35 million smartphones, with growth of 3.2 per cent YoY. Although it is the fourth consecutive quarter of YoY shipment growth, muted consumer demand and rising ASPs continue to restrict swift annual recovery.
Commenting on the report, Upasana Joshi, senior research manager, devices research, IDC, said, “The latter half of Q2 is a prelude to the crucial H2 of the year with festive sale period going up till November 2024. Apart from old inventory clearance in the first half of the quarter, vendors also started to launch new smartphones, especially in the mid-premium/premium segment (mostly China-based vendors) from mid-quarter onwards, for monsoon sales in July and August.”
According to the report, Smartphone average selling price (ASPs) grew by 2.8 per cent YoY; however, they declined quarter on quarter (QoQ) by 5.6 per cent, at $248.
The entry-level (sub- $100) segment witnessed a strong decline of 36 per cent YoY to 14 per cent share, down from 22 per cent a year ago. Xiaomi continued to lead this space, followed by Poco and realme. Shipments to the mass budget ($100< $200) segment grew by 8 per cent YoY, with a marginal increase in share to 44 per cent from 42 per cent. The top 3 brands were Xiaomi, realme and vivo, making up 60 per cent of this segment. The share of entry-premium ($200< $400) segment reached 30 per cent, up from 22 per cent and registered highest growth of 42 per cent YoY. OPPO, vivo and Samsung gained a significant share compared to the previous quarter, making up almost 60 per cent of this segment.
The report mentioned that the mid-premium segment ($400< $600) segment declined by 25 per cent in unit terms to a 4 per cent share, down from 5 per cent a year ago. vivo the major gainer, led with a 25 per cent share, followed by OnePlus and OPPO. The premium segment ($600< $800) held 2 per cent share and declined by 37 per cent in unit terms. Key models were the iPhone 13, Galaxy S23FE, iPhone 12 and OnePlus12. Apple’s share increased YoY to 61 per cent, while Samsung’s share increased to 24 per cent, from 21 per cent a year ago. The super-premium segment (more than $800) momentum continued with 22 per cent growth and its share up from 6 per cent to 7 per cent. The iPhone15/15 Plus/14/14 Plus together accounted for 77 per cent of shipments, followed by the Galaxy S24/S24 Ultra with an 11 per cent share.
Overall, Apple led the segment with a share of 83 per cent, followed by Samsung at 16 per cent. 27 million 5G smartphones were shipped in the quarter, the share of 5G smartphone shipments increased to 77 per cent, up from 49 per cent in Q2 2023, while 5G smartphone ASPs declined by 22 per cent YoY to $293. Within 5G, shipments of the mass budget ($100< $200) segment grew by 2.5x to reach 45 per cent share. Xiaomi’s Redmi 13C, OPPO’s F25 Pro, realme’ s 12x, Xiaomi’s Redmi 12 and realme’ s C65, were the highest shipped 5G models in Q2 2024.
Shipments to online channels grew by 8 per cent YoY, and its share increased to 50 per cent in Q2 2024 compared to 47 per cent in Q2 2023. Motorola entered the top five vendor list in the online channel, at the fourth slot, while vivo climbed to the second slot, led by its T series models. Due to severe heatwave conditions in major parts of India, offline channel shipments declined by 2 per cent YoY in Q2 2024.
Overall, vivo continued to lead for the second consecutive quarter, with multiple launches across price segments through the Y series, mid-premium V series and flagship X Fold 3 Pro. Motorola registered the highest growth backed by product portfolio across price segments, while Nothing witnessed the second-highest growth amongst all other brands.
Meanwhile, Navkendar Singh, associate vice president, devices research, IDC, said, “The premiumisation trend in the smartphone market, led by Apple and Samsung, coupled with rising device costs is motivating China-based brands to expand beyond the mass segment. The entry-premium segment ($200< $400) is expected to see healthy growth, while the entry-level (sub $100) will remain challenged at least this year despite efforts around launching affordable 5G smartphones. Also, the marketing around generative artificial intelligence (GenAI) smartphones will be more pronounced, amid heavy promotional activities around it.”
