Owing to heatwaves and seasonal challenges, smartphone shipments in India fell by 2% in Q2, although the overall market saw a modest growth as per reports.
According to Counterpoint’s Monthly India Smartphone Tracker, smartphone shipments in India dropped 2% year-over-year in Q2 2024 (April-June). Conversely, a similar report by Canalys highlighted that the Indian smartphone market grew by only 1% in the second quarter of the year.
Both reports have cited that a heatwave, seasonal slowdowns, and diminished demand from Q1 2024 drove the decline and overall negligible growth. Counterpoint highlighted that to address this, OEMs held sales events during Q2 to clear excess inventory, resulting in reduced sell-in and a decline phase.
Senior Research Analyst Shilpi Jain noted that heatwaves in various regions led to fewer visits to offline stores and delayed smartphone purchases, as consumers prioritised essential appliances like air conditioners and refrigerators. This drop in demand resulted in excess inventory.
However, summer sales online, a strong harvest, and aggressive promotions towards the end of the quarter helped OEMs recover and finish the quarter on a positive note. Canalys has addressed this note as well.
According to Counterpoint, Xiaomi regained the top position with a 23% year-over-year shipment increase to 18.9%, owing to a streamlined portfolio that covers entry-level to affordable premium segments.
The company enhanced its position by promoting flagship handsets, improving marketing, and expanding distribution channels.
For the second consecutive quarter, Samsung led in value terms, capturing over one-fourth of the market. Its new Fold 6 series is anticipated to maintain this leadership. Focusing on value rather than volume, Samsung’s ultra-premium segment (over INR 45,000) saw a 99% YoY growth in Q2 2024.
Vivo secured second place, with a shipment value of 18.8%, boosted by its higher-priced models, like the V30 series, which feature enhanced cameras.
Apple ranked third in value terms but is expected to recover in the next quarter due to recent price reductions across its entire iPhone lineup.
The report detailed that Nothing emerged as the fastest-growing brand in the first half of 2024, achieving a remarkable 567% YoY shipment growth. This surge was fuelled by the launch of new models, including the mid-segment Phone and the budget-friendly CMF Phone 1.
Motorola also saw significant growth, with an 88% YoY increase in Q2 2024. Its budget-friendly models emphasising CMF (Color, Material, Finish) features drove this growth.
Counterpoint inferred that the Xiaomi sub-brand POCO was the fastest-growing in the INR 10,000-INR 15,000 (~$120-$180) price segment, experiencing a 318% YoY growth. This success was attributed to its budget-friendly M-series 5G models.
Additionally, realme posted a 2% year-over-year growth by expanding its lineup with new P-series models and reintroducing its GT series.
The second quarter saw 5G smartphones achieve a record 77% share of the overall smartphone market in India due to falling average selling prices (ASPs). OEMs have been increasingly competing to offer more affordable 5G models, with Lava launching the Yuva 5G during the quarter.
Furthermore, MediaTek led the smartphone chipset market in India with a 54% share, while Qualcomm dominated the premium segment with a 33% share. The INR 20,000-INR 30,000 ($240-$360) and over INR 45,000 (>$540) price bands saw the fastest growth rates at 25% and 24% YoY, respectively.
Commenting on the market’s value dynamics, Research Analyst Shubham Singh said, “In Q2 2024, India’s smartphone market achieved its highest ever Q2 value, driven by the ongoing trend of premiumisation. Consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes. This resulted in a 24% YoY growth in the ultra-premium (>INR 45,000) segment.”
