India’s Smartphone Market Sees Record Growth
India’s smartphone market has experienced significant growth in 2024, achieving a remarkable nine percent year-on-year (YoY) revenue increase. This growth is based on wholesale prices and marks a record high for the industry. According to a recent report from Counterpoint Research, the market dynamics have shifted, with Samsung slipping to third place in India, while Vivo and Xiaomi have taken the lead. Notably, Apple’s iPhone 15 emerged as the highest-shipped smartphone in the fourth quarter of the year, highlighting the changing preferences of Indian consumers.
Indian Smartphone Market Registers Record Revenue Growth
The Counterpoint Research report reveals that the wholesale smartphone market revenue in India reached an all-time high in 2024, growing by nine percent YoY. A total of 153 million smartphone units were shipped during the year, reflecting a stable one percent YoY increase compared to 2023. The report attributes this early growth to steady inventory levels and a favorable market outlook. However, momentum slowed later in the year due to softened consumer demand and macroeconomic pressures.
A significant factor contributing to the record revenue levels is the strong “premiumisation trend.” The premium smartphone segment, which includes devices priced above Rs. 30,000, saw double-digit percentage shipment growth in 2024. In contrast, the entry-level segment, which comprises smartphones priced under Rs. 10,000, experienced a one-third decline, primarily due to inflationary pressures. This trend indicates a shift in consumer preferences towards higher-end devices, which are increasingly seen as status symbols.
Market Leaders and Shifting Dynamics
In a surprising turn of events, Vivo emerged as the leader in the Indian smartphone market in terms of volume for the first time, recording a 16 percent YoY growth. Xiaomi followed closely in second place, achieving a six percent YoY increase in shipments. Meanwhile, Samsung, despite its strong performance in the premium segment, slipped to third place. The report suggests that Samsung’s value-driven strategies may have impacted its shipments in lower price segments, leading to this decline.
Oppo secured the fourth position, although it faced a ten percent YoY decline in shipments. The brand managed to regain momentum later in the year through new product launches. Apple, on the other hand, ranked among the top five brands in India during the fourth quarter, with the iPhone 15 becoming the highest-shipped smartphone. This highlights Apple’s growing influence in the Indian market, particularly in the premium segment.
Interestingly, the brand Nothing emerged as the fastest-growing player, achieving an astonishing 577 percent YoY growth, primarily driven by its Phone 2a series shipments. Motorola also made significant strides, doubling its 2022 shipments with an 82 percent YoY increase. Realme strengthened its offline presence, with offline sales contributing 52 percent to its total shipments, up from 49 percent in 2023. In the feature phone market, Itel led with a 32 percent share, thanks to its robust distribution network in tier-2 and smaller cities.
Trends in Smartphone Technology and Consumer Preferences
The report highlights several key trends shaping the Indian smartphone market in 2024. Notably, 5G smartphones accounted for an impressive 78 percent of total shipments, with three out of four smartphones shipped being 5G-supported devices. This surge in 5G adoption is largely driven by the increasing availability of 5G chipsets in entry-level devices, making them more accessible to consumers.
In terms of chipsets, MediaTek led the market with a 52 percent share, while Qualcomm followed with a 25 percent share. The demand for premium smartphones continued to rise, with high-end devices making up 20 percent of total shipments. This growth can be attributed to advancements in generative AI features, improved audio-visual technologies, and a growing focus on content consumption and creation among consumers.
Despite a four percent YoY decline in smartphone shipments during the fourth quarter of 2024, the market value grew by five percent. This growth was primarily driven by the rising demand for premium devices, which helped offset the decline in overall shipments. The report underscores the resilience of the Indian smartphone market and its ability to adapt to changing consumer preferences and economic conditions.
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