India shipped 34 million smartphones in Q1 2024 at a year-on-year (YoY) growth rate of 11.5%, according to data from research firm International Data Corporation (IDC). Also, Chinese firm Vivo surpassed Samsung to become the number one smartphone brand in Q1 24 with a 16.2% market share.
The double digit growth marked the third consecutive quarter of rising shipments and was primarily driven by a flurry of new device launches across all price segments and a step up in promotional activity by brands in the premium segment, IDC said in the report.
“Several new launches across multiple price segments happened during the quarter, coupled with increased promotional activities, particularly around premium offerings,” said Upasana Joshi, senior research manager, client devices at IDC India.
Some other factors contributing to the surge in shipments include micro financing schemes offered by brands and discounts on older models by ecommerce platforms to clear inventory.
That said, analysts at IDC have predicted a modest single digit growth for 2024.
“Challenges around attracting first-time smartphone users and mitigating the impact of the secondhand market continue to restrict market growth,” said Navkendar Singh, associate vice president, devices research at IDC.
Singh added that the market concentration among the top brands is weakening, “with the long tail of smaller brands and sub-brands gaining volume.”
Further, the report shows that the average selling price (ASP) for smartphones remained flat at $263 (approx Rs 22,000) in the first quarter, halting a streak of price appreciation seen in the last few quarters.
In terms of market share, Vivo moved to the top with a YoY growth rate of 17.2%, while Samsung’s share of shipments slumped 13.3% from 20.1% a year ago to 15.6% in Q1 24. Xiaomi remains at third with 12.8% market share at a double-digit YoY growth of 13.3%. Motorola was the fastest growing brand in the first quarter with triple digit growth of 110%.
Apple, which has seen a double digit growth in India in the last several quarters, registered a 19% YoY growth in Q1 24. The iPhone maker was the sixth leading brand in India with 7.3% market share.
Early this month, Apple CEO Tim Cook highlighted the importance of the Indian market during the company's quarterly earnings call, noting they set new revenue records in India despite a global slump.
Further, the share of smartphones shipped in the entry-level segment (below $100) contracted from 20% a year ago to 15% in Q1 24, while the share of the budget segment ($100 to $200) expanded from 44% a year ago to 48%.
Chinese brand Xiaomi dominated the entry-level segment, followed by its sub-brand Poco and Transsion Holdings’ Itel Mobile. In the budget segment, Vivo, Xiaomi, and Samsung emerged as the top three brands with a combined market share of 53%.
In the entry premium segment ($200-to-$400), Oppo and Realme posted significant share gains accounting for 30% of the market. The super-premium segment (above $800) saw the fastest growth at 44%. Apple accounted for 64% of the market in this segment, followed by Samsung (25%).
Image credit: Abhijit Ahaskar