India smartphone market grows 7.2% in 1H24 amidst challenges: IDC

The Indian smartphone market shipped 69 million units in the first half of 2024, reflecting a 7.2% year-over-year (YoY) growth. According to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, 35 million smartphones were shipped in 2Q24, marking a modest 3.2% YoY increase. Despite four consecutive quarters of growth, the market continues to grapple with challenges such as subdued consumer demand and rising average selling prices (ASPs).

The report highlights that 2H24 is crucial, especially with the upcoming festive sales period. Vendors began launching new models, particularly in the mid-premium and premium segments, anticipating monsoon sales starting in July and August. According to Upasana Joshi, Senior Research Manager at IDC India, the latter half of the second quarter was just a prelude to what is expected to be a significant sales period later in the year.

India’s 5G smartphone market share increased to 77% in 2Q24, while the average selling price declined by 22% to USD 293.

On the technology front, 27 million 5G smartphones were shipped during the quarter, pushing the share of 5G devices to 77%, up from 49% in the same period last year. The ASP for 5G smartphones decreased by 22% YoY to USD 293. Notably, the mass budget segment within 5G saw its share surge by 2.5 times, with models like Xiaomi’s Redmi 13C and OPPO’s F25 Pro leading the charge.

Market Segment Dynamics and Vendor Performance

In 2Q24, the average selling price of smartphones grew by 2.8% YoY, although it saw a quarter-on-quarter (QoQ) decline of 5.6%, settling at USD 248. The entry-level segment, priced below USD 100, experienced a sharp decline of 36% YoY, with its market share dropping from 22% to 14%. Xiaomi maintained its lead in this segment, followed by Poco and Realme.

Conversely, the mass budget segment, priced between USD 100–200, saw an 8% YoY increase in shipments, expanding its market share from 42% to 44%. The top three brands in this segment were Xiaomi, Realme, and Vivo, collectively accounting for 60% of the market.

The entry-premium segment, ranging from USD 200–400, exhibited the highest growth, with a 42% YoY increase, boosting its market share from 22% to 30%. OPPO, Vivo, and Samsung were the major gainers, together capturing nearly 60% of this segment. Meanwhile, the mid-premium segment (USD 400–600) saw a 25% decline in unit shipments, dropping to a 4% market share. Vivo led this segment with a 25% share, followed by OnePlus and OPPO.

Online channels performed strongly, with shipments growing by 8% YoY and their market share increasing from 47% to 50%. Motorola made a notable entry into the top five vendors in the online channel, while Vivo climbed to the second position, driven by the popularity of its T series models. However, offline channels faced challenges, with shipments declining by 2% YoY, partly due to a severe heatwave affecting major parts of India.

In 2Q24, the average selling price of smartphones grew by 2.8% YoY, although it saw a quarter-on-quarter (QoQ) decline of 5.6%, settling at USD 248.

Vivo maintained its lead for the second consecutive quarter, with successful launches across various price segments. Motorola recorded the highest growth, supported by a diverse product portfolio, while the brand Nothing posted the second-highest growth among all competitors.

Ups and Downs in the Premium Segment

In the premium segment (USD 600–800), unit shipments fell by 37%, maintaining a 2% market share. Apple’s iPhone 13 and 12 models dominated this segment, increasing Apple’s market share to 61% YoY, with Samsung following at 24%. 

The super-premium segment, priced above USD 800, continued to grow, registering a 22% increase and raising its market share from 6% to 7%. Apple overwhelmingly led this segment with an 83% market share, followed by Samsung at 16%.

Navkendar Singh, Associate Vice President of Devices Research at IDC, noted that the trend of premiumisation in the smartphone market, led by Apple and Samsung, is prompting China-based brands to expand their presence beyond the mass segment.

“The entry-premium segment is expected to continue growing, while the entry-level segment will likely remain challenged throughout the year, despite efforts to introduce more affordable 5G smartphones. Additionally, the marketing of smartphones featuring generative AI capabilities is expected to intensify, driven by substantial promotional activities,” Singh said.