5G, AI to fuel 7-8% growth in India’s smartphone market: CMR

The smartphone market in India is projected to grow by 7-8% in 2024, driven by the rising demand for 5G and AI-enabled devices. According to the latest India Mobile Handset Market Review Report for Q2 2024 by CyberMedia Research (CMR), with the festive season approaching, the market is poised for substantial growth, fuelled by consumer interest in premium and value-for-money smartphones. 

Pankaj Jadli, Analyst at CMR’s Industry Intelligence Group, highlights that aggressive offers and easy financing schemes will likely accelerate smartphone upgrades. The diffusion of 5G technology into lower price tiers is expected to be a key trend in the coming quarters.

The CMR report also points out that despite a 4% year-over-year (YoY) decline in the smartphone market in Q2 2024, the 5G smartphone segment has experienced 56% YoY growth and now accounts for 79% of the total market share.

In Q2 2024, overall mobile market shipments declined 3% year over year. Nevertheless, Xiaomi, Samsung, and Vivo retained their dominance in the smartphone leaderboard with market shares of 19.3%, 18.5%, and 17%, respectively. 

Despite a 4% year-over-year decline in the smartphone market in Q2 2024, the 5G smartphone segment experienced 56% YoY growth.

Realme and OPPO followed, capturing 13% and 9% of the market, respectively. Vivo led the 5G segment with a 21% share, closely followed by Samsung at 20%. Notably, 5G smartphones priced between Rs 10,000 and Rs 13,000 witnessed an impressive YoY growth exceeding 200%.

Shifting Consumer Preferences

Menka Kumari, Analyst at CMR’s Industry Intelligence Group, observed a significant shift towards premium devices and increased 5G adoption in the Indian smartphone market. The availability of affordable 5G phones in the Rs 10,000–13,000 range has been a significant growth driver. Additionally, the premium segment (priced above Rs 25,000) recorded a 9% YoY growth, reflecting a strong trend towards premiumisation.

The affordable smartphone segment (below Rs 7,000) faced a steep 26% YoY decline, indicating a shift in consumer preferences towards more feature-rich options. Meanwhile, the value-for-money segment (Rs 7,000–25,000) continues to dominate, capturing 71% of the market share, driven by strong demand for quality devices at accessible prices.

The feature phone market recorded a modest 1% YoY growth in Q2 2024. However, 2G feature phone shipments declined by 6% YoY, while 4G feature phones surged by 39%, primarily driven by Jio’s 68% market share, followed by Nokia at 28%.

Key Performers and Market Dynamics

Xiaomi retained its leadership in the smartphone market with a 19% share, bolstered by models like the Redmi 13C 5G and Redmi 12 5G. Vivo secured the second spot with a 17% share, led by models such as the vivo T2 Pro 5G and vivo Y28. Realme, holding a 13% market share, saw a modest 4% YoY growth, with top models including the Realme 12x and Realme C65. 

Apple captured a 5% market share, with the iPhone 15 series comprising 58% of its total shipments. Motorola recorded an impressive >175% YoY growth, driven by the popularity of models like the Moto G34 and Moto G24 Power.

The affordable smartphone segment (below Rs 7,000) faced a steep 26% YoY decline, indicating a shift towards more feature-rich options.

In the feature phone market, Jio secured 15% of the market share in Q2 2024, mainly due to the success of its JioBharat B1 model, which captured 36% of the market, followed by JioPhone Prima at 22%.

MediaTek led with a 54% share in the smartphone chipset space among the chipset players, introducing the Dimensity 9300 chipset during the quarter. Qualcomm continued to dominate the premium segment (priced above Rs 25,000) with a 37% share.

This growth projection signals a dynamic period for the Indian smartphone market, with evolving consumer preferences and technological advancements shaping the future.