Although recovery is slow due to rising selling prices, the smartphone market in India grew 7.2% YoY in the first half of the year, shipping 69 million units. The Q2 performance of the market impacted this.
The Indian smartphone market shipped 69 million units in the first half of 2024, reflecting a 7.2% year-over-year growth. According to the International Data Corporation’s (IDC) report, 35 million smartphones were shipped in the second quarter alone, marking a 3.2% increase compared to last year.
However, despite this continued growth over four consecutive quarters, the pace of annual recovery remains slow due to muted consumer demand and rising average selling prices (ASPs).
Upasana Joshi, Senior Research Manager at IDC India, pointed out that the latter half of the second quarter sets the stage for the crucial second half of the year, which includes the festive sales period running through November.
The second quarter saw vendors launching new smartphones, especially in the mid-premium and premium segments, to align with the monsoon sales in July and August, following the clearance of old inventory earlier in the quarter.
During the 2Q24, ASPs of smartphones in India rose by 2.8% year-over-year but fell by 5.6% quarter-over-quarter to $248. The entry-level segment (sub-$100) saw a significant 36% decline YoY, decreasing to a 14% market share. Xiaomi led this segment, followed by Poco and realme.
Meanwhile, the entry-premium segment ($200-$400) achieved a 42% year-over-year growth, capturing 30% of the market share. OPPO, vivo, and Samsung were key players in this category.
However, the mid-premium segment ($400-$600) experienced a 25% decline in units, holding a 4% share. vivo led this segment with a 25% share, followed by OnePlus and OPPO. The premium segment ($600-$800) saw a 37% drop in units too, with a 2% market share. Key models included the iPhone 13, Galaxy S23FE, iPhone 12, and OnePlus 12. Where, Apple’s share increased to 61%, while Samsung’s share rose to 24%.
The super-premium segment ($800+) grew by 22%, with its market share rising to 7%. Apple dominated this segment with an 83% share, while Samsung held a 16% share. The iPhone 15 series and Galaxy S24 series were among the top models.
Additionally, in 2Q24, 27 million 5G smartphones were shipped, representing 77% of all shipments, up from 49% in the previous year. The ASP for 5G smartphones decreased by 22% year-over-year to $293. Xiaomi’s Redmi 13C and OPPO’s F25 Pro were among the top 5G models.
Shipments in the mass budget segment ($100-$200) grew 8% YoY, with its market share rising to 44%. Xiaomi, realme, and vivo led this segment.
Online channel shipments also increased by 8% YoY, reaching a 50% share, with Motorola joining the top five and vivo advancing to second place. In contrast, offline shipments fell by 2% YoY due to severe heatwave conditions in India.
Overall, vivo led the market for the second consecutive quarter, supported by multiple launches across various price segments. Motorola experienced the highest growth, and Nothing achieved the second-highest growth among all brands.
Commenting on the trends, Navkendar Singh, Associate Vice President at IDC, noted that Apple and Samsung’s premiumisation trend is prompting Chinese brands to expand beyond the mass segment.
Continued growth is expected in the entry-premium segment, with increased marketing for GenAI smartphones, while the entry-level segment still poses a challenge for the Indian smartphone market.
