According to Monthly India Smartphone Tracker report by Counterpoint Research, India’s smartphone shipments in quarter 1 (Q1) of 2024 (January-March) grew 8 per cent year-on-year (Y-o-Y) in terms of volume and 18 per cent in terms of value. Volume growth was primarily driven by healthy inventory levels and low base of Q1 of 2023. Value growth was driven by ongoing premiumisation trend and new launches during the quarter, such as Samsung Galaxy S24 and OnePlus 12 series. The premium segment (more than Rs 30,000) reached 20 per cent volume share, its highest ever, and 51 per cent value share of the overall Indian smartphone market in Q1 2024.

Commenting on the report, Shilpi Jain, senior research analyst, Counterpoint Research, said, “During the quarter, India’s smartphone market reached its highest ever Q1 value. The growth was driven by strengthening trend of premiumisation, with consumers upgrading to higher-value smartphones across price tiers. According to Counterpoint’s Consumer Lens survey, more than one-third of mid-tier consumers are willing to upgrade to premium segment. Factors driving this trend include affordable financing schemes, better value for trade-ins, and bundled schemes, along with the demand for top-tier features such as artificial intelligence (AI), gaming, and imaging enhancements. With a one-fourth share, Samsung led the market in terms of value. Also, approximately at $425, Samsung’s application service provider (ASP) was its highest ever, driven by its leading position in more than Rs 20,000 segment. This can be attributed to a stronger mix of its newly launched Galaxy S24 series due to its features such as generative artificial intelligence (GenAI), and newly revamped A series, along with the increasing popularity of Samsung’s financing schemes. Apple also had a record quarter in India in terms of value, leading the premium segment both in value and volume terms, driven by latest iPhone 15 series, especially in offline channels.”

Meanwhile, Shubham Singh, research analyst, Counterpoint Research, said, “The onset of 2024 brought a promising start for original equipment manufacturer (OEMs), with better inventory levels allowing them to fill channels with multiple new launches. However, sales were less than expected due to a drop in retail footfalls and a section of consumers cutting down on discretionary spending. During the quarter, Vivo captured the top spot by volume for the first time ever, with a 19 per cent share driven by its 5G leadership and colour, material, finish (CMF) positioning, along with strong imaging capabilities. Key OEMs focused on diversifying their channel strategies during the quarter, which led to growth in shipments in offline channels, with inventory building up by the end of the quarter.”

Nothing, Motorola, Xiaomi were fastest-growing brands:

  • Nothing grew the fastest, at 144 per cent Y-o-Y, due to its new mid-segment model Nothing (2a), which gained significant mind share.
  • Motorola’s shipments grew 58 per cent Y-o-Y in Q1 2024 driven by demand for better connectivity fault management (CMF) in smartphones and its smoother stock android experience.
  • Xiaomi’s shipments grew 28 per cent Y-o-Y to secure the second spot driven by a leaner and streamlined portfolio and a proactive offline channel strategy.
  • Transsion brands grew 20 per cent Y-o-Y after increasing offline focus and offering premium specs in the affordable segment.
  • Realme witnessed an 18 per cent Y-o-Y growth in Q1 2024 driven by its latest number series, which targets young age groups through its superior camera capabilities and premium-like design.

Other key trends:

  • We expect India’s smartphone market to grow in single digits in 2024, driven by strong premiumisation, 5G adoption and post-COVID upgrades.
  • In Q1 2024, India’s 5G smartphone shipments captured their highest ever share of 71 per cent.
  • MediaTek led India’s smartphone chipset market with 53 per cent share, Qualcomm leads the premium segment with 35 per cent share.
  • During Q1 2024, the offline share reached 64 per cent, marking the highest quarterly post-COVID figure.