While 5G demand is set to explode in 2025, India’s smartphone market surged 9% in Q3 2024, driven by early sales. vivo leads with innovative launches for the first time.
The Indian smartphone market experienced a 9% year-on-year (YoY) growth in Q3 2024, shipping a total of 47.1 million units, according to a Canalys report. The growth was driven by vendors effectively clearing inventory through early monsoon sales across online and offline channels in preparation for the upcoming festive season.
However, the report highlighted that demand during this period was slower than anticipated, influenced by rising food inflation and reduced urban spending on consumer durables.
For the first time, vivo claimed the top spot in the market, capturing a 19% market share by shipping 9.1 million units, up from 7.2 million units and 17% market share in Q3 2023, reflecting a 26% annual growth.
Xiaomi followed in second place, shipping 7.8 million units and holding a 17% market share. This is a slight increase from 7.6 million units and an 18% market share the previous year, resulting in a 3% growth.
In the third position, Samsung shipped 7.5 million units, securing a 16% market share, although this marked a decline from 7.9 million units and 18% market share in Q3 2023, reflecting a 4% drop.
OPPO shipped 6.3 million units, with a 13% market share, up from 4.4 million units and 10% market share last year, showing an impressive growth of 43%. realme shipped 5.3 million units, capturing 11% of the market, but experienced a decline from 5.8 million units and 13% market share in Q3 2023, resulting in an 8% decrease.
Additionally, other brands collectively shipped 11.1 million units, holding a 23% market share, compared to 10.2 million units and 24% market share the previous year, indicating an 8% growth.
Looking at the market trends, Sanyam Chaurasia, Senior Analyst at Canalys, stated, “vivo secured pole position owing to new launches in higher price bands coupled with aggressive channel margins.” Both vivo and OPPO expanded their online portfolios, including the T3 and K12 series, to boost sales beyond their traditionally solid offline channels.
The report noted that while top brands are increasing their mid-to-high range offerings, other brands outside the top five also performed well. Apple saw significant demand for the iPhone 15, especially from smaller cities.
Chaurasia warned that despite aggressive shipping for festive demand, weaker traction might lead to an inventory build-up. “Both replacement and upgrade buyers leaned toward higher-priced models due to expanded mid-to-high-end offerings, competitive trade-in deals, and accessible financing options. Brands are reliant on offline sales before the Diwali season and will remain cautious about year-end inventory levels,” he said.
The report anticipates modest single-digit growth for the smartphone market in 2025 as the pandemic-driven replacement cycle ends. Despite improved rural demand from favourable monsoon conditions, the shift from feature phones to smartphones remains slow, hindered by competition from affordable 4G feature phones and a growing second-hand market.
Looking ahead, Chaurasia highlighted the ultra-low-end 5G market as crucial for the Indian smartphone sector’s growth in 2025, with major sub-₹10,000 5G launches expected.
