India Smartphone Market Report 2024: Premiumization Drives Record Revenue, vivo Takes the Crown, Apple Makes a Strong Surge

India Smartphone Market Report 2024: Premiumization Drives Record Revenue, vivo Takes the Crown, Apple Makes a Strong SurgeCounterPoint Research recently released a report revealing that the Indian smartphone market achieved record-high total revenue in 2024. This surge is primarily attributed to the robust growth of the premium segment and increased consumer preference for high-priced phones

India Smartphone Market Report 2024: Premiumization Drives Record Revenue, vivo Takes the Crown, Apple Makes a Strong Surge

CounterPoint Research recently released a report revealing that the Indian smartphone market achieved record-high total revenue in 2024. This surge is primarily attributed to the robust growth of the premium segment and increased consumer preference for high-priced phones. While smartphone shipments only saw a 1% year-over-year increase to 153 million units, overall market revenue jumped by a remarkable 9% due to the strong performance of high-end devices. The report provides an in-depth analysis of various aspects of the Indian smartphone market, highlighting its increasing maturity and intense brand competition.

Premium Segment Leads Growth, Low-End Faces Challenges

The report indicates a significant transformation in the Indian smartphone market. New user acquisition has slowed, replacement cycles have lengthened, and improved performance in mid-to-low-end phones has reduced the need for upgrades. This market maturity is clearly reflected in the shrinking entry-level segment (priced below 10,000, approximately $120 USD), which saw a one-third reduction in size, further exacerbated by inflationary pressures.

However, the premium segment (priced above 30,000, approximately $360 USD) demonstrated strong growth, achieving double-digit shipment increases and becoming the key driver of overall revenue growth. Trade-in programs and flexible financing options effectively facilitated premium phone adoption, making high-end models more accessible to consumers. This polarization clearly showcases the increasing premiumization trend within the Indian smartphone market.

Brand Competition Landscape: vivo Tops, Xiaomi Rebounds, Apple Charges In

The 2024 Indian smartphone market witnessed intense competition, with brands exhibiting varying performances. vivo secured the top market share position for the first time, achieving a 16% year-over-year growth, fueled by its robust offline network and the strong performance of its sub-brand, iQOO. This underscores the enduring importance of offline channels in the Indian market, a space vivo effectively capitalized on.

Xiaomi, after experiencing declines in 2022 and 2023, returned to growth in 2024, with a 6% year-over-year increase in shipments. This signals a successful strategic adjustment and a gradual reversal of its downturn. Samsung, however, slipped to third place, as its focus on value-for-money strategies resulted in reduced market share in the lower price segments, impacting overall shipments. Despite this, its premium devices, particularly the S series, performed well, highlighting its competitiveness in the high-end market.

OPPO ranked fourth, experiencing a 10% year-over-year decline, primarily due to product and channel challenges in the first half of 2023. However, revamped product portfolios, including the K and A series, fueled a rebound in the second half, showcasing its adaptability.

Apple made a strong entry into the top five in Q4 2024, achieving record quarterly shipments and ending the year with the highest market value share. This signifies the growing influence of the Apple brand in the Indian premium segment, as its premium pricing strategy resonated with consumers.

Emergence of New Brands, Rising 5G Penetration

Beyond the established players, several new brands demonstrated impressive growth. Nothing, propelled by its 2a series and CMF sub-brand, became the fastest-growing brand in 2024, with a staggering 577% year-over-year increase. Motorola also maintained strong growth, increasing by 82% year-over-year and doubling its 2022 shipments. The success of these emerging brands injects new dynamism into the Indian smartphone market, emphasizing its increasingly diverse nature.

5G phone penetration continued its upward trajectory, reaching 78%, driven by the availability of entry-level 5G chipsets. This suggests wider 5G adoption in India, further stimulating market growth.

Chipset Market: MediaTek Leads, Qualcomm Follows

In the chipset market, MediaTek maintained its leadership position with a 52% market share, followed by Qualcomm at 25%. This indicates the dominance of these two companies in the Indian smartphone chipset market, and their competition will continue to shape the industry's direction.

In the feature phone market, itel held the leading position with a 32% market share, indicating the continued existence of a significant feature phone segment with its dedicated user base.

Conclusion: Premiumization, Brand Competition, and Technological Upgrades Shape the Future

The 2024 Indian smartphone market is characterized by premiumization, intensified brand competition, and technological upgrades. The rise of the premium segment, emergence of new brands, and widespread 5G adoption are shaping the future trajectory. The challenges and opportunities presented by market maturity necessitate continuous adjustments in product innovation, channel development, and market strategies for brands to secure their market positions and sustain growth. The Indian smartphone market remains dynamic and full of potential, warranting continued attention.