India's Smartphone Market Shows Strong Growth, Driven by 5G Phones

India's Smartphone Market Shows Strong Growth, Driven by 5G PhonesThe latest "Global Quarterly Mobile Phone Tracker" report by International Data Corporation (IDC) revealed that the Indian smartphone market witnessed robust performance in the first half of 2024, with shipments reaching 69 million units, marking a 7.2% year-on-year growth

India's Smartphone Market Shows Strong Growth, Driven by 5G Phones

The latest "Global Quarterly Mobile Phone Tracker" report by International Data Corporation (IDC) revealed that the Indian smartphone market witnessed robust performance in the first half of 2024, with shipments reaching 69 million units, marking a 7.2% year-on-year growth. Despite weak consumer demand and rising average selling prices, the Indian smartphone market has achieved year-on-year growth for four consecutive quarters.

The report highlighted that the average selling price (ASP) of smartphones in India witnessed a year-on-year rise of 2.8%, although it experienced a quarter-on-quarter decline of 5.6% to USD 248. The entry-level segment (below USD 100) saw a significant year-on-year decline of 36%, dropping to 14% compared to 22% a year ago. The mass segment (USD 100-200) saw an 8% year-on-year growth in shipments, with a slight increase in share to 44%. The mainstream segment (USD 200-400) witnessed a remarkable 42% year-on-year growth, boosting its share from 22% to 30%. The mid-premium segment (USD 400-600) experienced a 25% decline in share from 5% a year ago to 4%. The premium segment (USD 600-800), holding a 2% market share, saw a 37% drop in shipments. The ultra-premium segment (above USD 800) continued its growth trajectory, expanding its share from 6% to 7%.

5G Phones Fueling Market Growth

In the second quarter of 2024, India witnessed shipments of 27 million 5G smartphones, representing a significant jump from 49% in Q2 2023 to 77% in Q2 2024. Despite a 22% year-on-year decline in the average selling price of 5G smartphones, the mass segment of 5G phones witnessed a 2.5-fold surge in shipments, reaching a 45% share, becoming a major driving force behind market growth.

Online Channels Thrive

The report indicated that online channels in India witnessed an 8% year-on-year growth in smartphone shipments during Q2 2024, increasing their share from 47% in Q2 2023 to 50% in Q2 2024. Motorola made its entry into the list of top five online vendors, securing the fourth spot, while vivo climbed to the second position led by its T series models.

Offline Channels Impacted by Weather

The offline channels in India experienced a 2% year-on-year decline in shipments during Q2 2024 due to the harsh weather conditions prevailing in major parts of the country.

Key Brand Performance

Vivo maintained its lead for the second consecutive quarter, launching multiple products across price segments with its Y series, mid-premium V series, and flagship XFold3Pro. Motorola achieved the highest growth propelled by its product portfolio across various price segments, while Nothing recorded the second highest growth among all other brands.

Brand Market Share

• Xiaomi continued to dominate the entry-level segment, closely followed by Poco and realme.

• Xiaomi, realme, and vivo accounted for 60% of the mass segment.

• OPPO, vivo, and Samsung collectively captured nearly 60% of the mainstream segment.

• Vivo led the mid-premium segment with a 25% share, trailed by OnePlus and OPPO.

• Apple held the top spot in the premium segment with a 61% share, while Samsung saw its share increase from 21% a year ago to 24%.

• Apple dominated the ultra-premium segment with a commanding 83% share, followed by Samsung at 16%.

Conclusion

The Indian smartphone market demonstrated strong performance in the first half of 2024, with 5G phones acting as a catalyst for growth. Online channels flourished, while offline channels were affected by weather conditions. Vivo maintained its leadership for the second consecutive quarter, while Motorola and Nothing displayed impressive results. The Indian smartphone market is expected to continue its growth trajectory fueled by the ongoing expansion of 5G networks.