According to a report by Canalys, in 2024, India’s smartphone market grew 5 per cent, reaching 155.9 million shipments, driven by the pandemic refresh cycle and 5G upgrades. Vendors aggressively launched devices in the first three quarters, with some using product mix strategies to focus on higher price bands. However, during the festive season, brands faced inventory pileups due to weaker mass-market demand. This prompted brands to offer heavy discounts and extended channel margins to clear stock and finish the year with a better inventory situation.
The report further stated that Indian smartphone shipments fell 4 per cent to 37.2 million units in fourth quarter (Q4) 2024, as vendors adjusted inventory post-festive season. vivo maintained its pole position with 7.5 million units and a 20 per cent market share. Xiaomi followed in second place with 5.7 million units, while Samsung secured third place with 5.4 million units. OPPO (excluding OnePlus) and Apple rounded out the top five, shipping 4.2 million and 4.0 million units, respectively. Apple captured fifth place for the first time, bolstered by aggressive promotions and strong festive demand.
Commenting on the report, Sanyam Chaurasia, senior analyst, Canalys, said, “Apple has broken into the top five in the Indian smartphone market for the first time, with a continued focus on driving upgrades and strengthening its ecosystem. In 2024, the competition in the ultra-premium segment has intensified amid aggressive launches from Android vendors. Consequently, Apple has been assertive with channel-driven promotions, particularly during competitors’ flagship launches, ahead of iPhone releases and festive seasons. Beyond instant cashback and discounting, programs like the ‘Buyback Program’ and the ‘iPhone for Life Program – offering interest-free EMI plans’ have significantly driven affordability and boosted upgrades. Merchants are willing to absorb the cost of running these zero-interest programs, recognising Apple’s strong brand appeal as a key driver. Going forward, Apple will focus on three key areas – driving Pro series upgrades for existing customers post local production price adjustments, expanding into lower-tier cities to attract new iOS users amid the high aspirational value of iPhones and boosting ecosystem demand across the market.”
He further added, “Q4 witnesses cautious vendor strategies as high channel inventories weigh on volume growth post-festivities, but strong value growth underscores premium demand. Limited new launches and subdued brand push allowed channels to focus on clearing existing inventories. Brands such as vivo and OPPO maintained strong momentum, leveraging diversified strategies. vivo performed well online with its T3 series and offline with its value-driven Y-series. OPPO sustained its momentum by focusing on standout features like design and durability in models such as the K12x, A3 and F27 series. Meanwhile, the premium segment sustained robust growth, fuelled by strong demand for Samsung and Apple’s previous-generation models. Samsung’s Galaxy S23 and S23 FE, gained volumes despite an overall shipment decline, while iPhone 15 demand remained resilient even with the launch of the latest models. This momentum was bolstered by channel-driven strategies such as attractive trade-in offers, extended warranties and zero prepayment schemes, effectively driving consumer interest in higher-value segments.”
