According to a report by Counterpoint Research, the Indian smartphone market’s wholesale revenue rose 9 per cent year-on-year (YoY) to hit a record high in 2024. Smartphone shipments grew 1 per cent YoY in 2024, reaching 153 million units. 2024 began on a positive note, with early growth, steady inventory levels and a favourable market outlook. However, momentum slowed as the year progressed due to softened consumer demand and macroeconomic pressures. Value premiumisation trends remained strong, driving the overall market to record its highest-ever revenue.

Key insights from the report include:

  • Nothing was the fastest-growing brand in 2024, achieving an impressive 577 per cent YoY growth, driven by the 2a series and its sub-brand CMF.
  • Motorola continued its impressive run, growing 82 per cent YoY in 2024 and doubling its shipments from that in 2022.
  • 5G smartphone shipment penetration reached 78 per cent in 2024, thanks to the availability of 5G chipsets in entry-level smartphones.
  • MediaTek led India’s smartphone chipset market with its highest-ever 52 per cent share, followed by Qualcomm at 25 per cent.
  • Premium smartphones now account for one in five shipments in India as demand for high-end features grows. With hardware differentiation narrowing, OEMs are leveraging GenAI to offer hyper-personalised experiences, intuitive UIs, and advanced audio-visual technologies like Dolby Vision and Dolby Atmos. As consumers spend more time on content consumption and an increase in content creation, they are looking for smartphones that offer high-quality media experiences.

Like other brands, realme’s growing focus on offline channel expansion led its portfolio contribution towards offline shipments to reach 52 per cent in 2024, up from 49 per cent in 2023.

In the feature phone space, itel led the market with a 32 per cent share in 2024. The brand’s strong distribution network in tier-2 and beyond cities helped it retain the top spot.

Commenting on the report, Shilpi Jain, senior research analyst, said, “India’s smartphone market is showing signs of maturity, with stable volumes affected by low entry of new users into the ecosystem. Replacement cycles are increasing as entry- and mid-range devices continue to improve each year. At the same time, there is a shift toward higher-priced devices, with shipments of premium segment devices (more than Rs 30,000) growing by double-digit percentages, driving a 9 per cent YoY growth in wholesale value – the highest ever recorded. Consumer preference for premium smartphones is accelerating, driven by accessibility and affordability through trade-in programs and flexible financing options, turning consumer aspirations into reality. However, overall shipment growth remained marginal due to inflationary pressures, which significantly impacted the entry-level segment (sub-Rs 10,000), resulting in a one-third decline. Looking ahead, market volumes in 2025 are expected to grow in single-digit percentage, while value is projected to reach another all-time high, with premiumisation continuing as the key driver.

Meanwhile, Shubham Singh, research analyst, said, “vivo emerged as the market leader for the first time, growing 16 per cent YoY, aided by a robust offline network and supported by its sub-brand iQOO. Xiaomi secured the second spot, returning to growth with a 6 per cent YoY increase in shipments after seeing declines in 2022 and 2023. Samsung slipped to third, as its value-driven strategies led to a reduced position in lower price bands, impacting overall shipments. However, Samsung’s premium devices continued to perform well, particularly its S series, which helped the brand gain share in the premium segment. OPPO fell to fourth place with a 10 per cent YoY decline, primarily due to product and channel challenges in H1 2023. However, it regained momentum with a revamped product portfolio, including the K and A series. 2024 was another strong year for Apple, as it ranked among the top five in the fourth quarter (Q4) 2024, achieving record shipments in a single quarter and ending the year with the highest market value share.”

Further, Singh added, “However, India’s smartphone market slipped 4 per cent YoY in Q4 2024 due to post-festive slumps, with OEMs focusing on clearing Q3 inventory. Meanwhile, the value grew by 5 per cent, driven by demand for premium devices and new launches in December 2024.”