Samsung dominates the India Premium Smartphone Segment in H1 2020: CMR

India’s smartphone shipments in the premium segment (>₹25,000) grew 18% YoY in H1 2020, despite the critical challenges facing the Indian smartphone market. Samsung led the premium smartphone segment with a 37% market share, followed by Apple with a 26% share, and OnePlus at a distant third with a 15% share.

According to Anand Priya Singh, Analyst – Industry Intelligence Group (IIG), CMR, “Owing to the pandemic, H1 2020 was a tough period for the overall smartphone industry in general,  with multiple challenges.

However, the premium smartphone segment was one of the least affected segments. In fact, the segment grew owing to strong consumer demand and good supply-side dynamics.”

In H1 2020,  the first wave of 5G smartphones debuted in the premium smartphone segment.  Many new OEMs made some strategic moves into the premium segment, including the likes of Xiaomi, Vivo, Realme, OPPO, and Motorola.

According to Amit Sharma, Analyst – Industry Intelligence Group (IIG), CMR, “In H1 2020, consumer demand in the premium smartphone segment continued to remain high, and, in fact, fuelled the market growth.

This bodes well for H2 2020, and, especially, in the run-up to the all-important festive season. Beyond the incumbents – including Samsung and Apple, aspirational premium brands will seek to make in-roads into the premium segment.”

Premium Smartphone Market (>₹ 25,000) : Segmental View

The Premium Smartphone segment (₹ 25,000 – 50,000) is a niche, but hyper-competitive segment, where more OEMs, including the likes of OPPO and Xiaomi, are currently competing for greater mind share, and brand share.

This segment accounted for 5% of the total smartphone shipments in H1 2020.  Samsung Galaxy A71 was the star in this segment, contributing to 19% in this segment.

The Super Premium Smartphone segment (₹ 50,000 – 1, 00,000) saw Apple on top with 56% market share, while Samsung was placed second with 34%, and OnePlus at third position with 4% market share.

The Apple iPhone 11 contributed to be the bestseller here, accounting for 39% of the shipments. This segment accounted for ~2% of the total smartphone shipments in H1 2020.

The Uber Premium Smartphone segment (>₹ 1,00,000) saw Apple with a 67% market share, while Samsung was placed a distant second with a 30% market share. Apple iPhone 11 Pro Max contributed to around 40% of the shipments in this segment.

Premium Smartphone Market Leaderboard

Samsung led the premium smartphone market, with a 37% market share majorly to its success of Galaxy A71 and A51 which contributed 38% and 13% respectively of its shipments, and YoY growth of 56%.

Samsung’s domination of the overall premium smartphone segment was made possible through good supply-side dynamics, attractive discounts, and smart channel strategies. Samsung also started manufacturing its flagship Galaxy S20 series in India during this quarter.

Apple continued its impressive run in the premium smartphone market, growing by 14% YoY and with a 26% market share. The iPhone 11 continued to garner some good market response in the initial part of the year.

On the other hand, the all-new iPhone SE 2020 is on track to repeat the exceptional performance of the iPhone 11. It captured an 8% market share of the total premium smartphones shipped during Q2.

OnePlus was placed third with a 15% market share, with the newly launched OnePlus 8     contributing to a majority of its shipments.

Future Outlook

As we move towards the all-important festive season, India’s premium smartphone segment is potentially slated to grow 20% YoY in H2 2020, with many new device offerings anticipated from various OEMs.

Indian consumers will stand to benefit from the intense competition and offerings across online and offline channels. Samsung and Apple will be in a dead heat in H2 2020 and potentially slated to garner 28-29% market share each.

Beyond the incumbents, the new premium segment aspirants, including the likes of Xiaomi and OPPO will seek to shake the turf.