The Indian smartphone market has achieved significant growth for the fifth consecutive quarter, with shipments reaching 46 million units in Q3 2024. This marks a 5.6% year-over-year increase, according to the IDC‘s Worldwide Quarterly Mobile Phone Tracker. Notably, Apple experienced its highest-ever quarterly shipments in India, delivering 4 million units during this period.
Indian Smartphone Market Sees Fifth Consecutive Growth Quarter, Driven by Discounts and 5G Demand
The robust growth was primarily fueled by aggressive discounts, flexible financing options, extended warranties, and cashback offers available through both online and offline sales channels. These promotions made it easier for consumers to purchase higher-end models, boosting demand across various price segments.
The increasing availability of 5G smartphones also played a critical role. Many consumers opted for discounted flagship models from Apple and Samsung during major online sales events. Upasana Joshi, Senior Research Manager at IDC Asia Pacific, noted that new 5G model launches significantly contributed to the demand surge, especially in the flagship category.
Key Trends in Q3 2024
1. Rising Average Selling Price (ASP):
The average selling price (ASP) of smartphones rose slightly by 0.9% year-over-year and 3.8% quarter-over-quarter, reaching $258. The uptick reflects a consumer shift towards higher-priced models, driven by better financing options and enticing promotions.
2. Growth in Entry-Premium and Premium Segments:
The entry-premium segment ($200-$400) showed substantial growth, with a 42% year-over-year increase. It now accounts for 28% of the total market, up from 21% in the previous year. OPPO led this segment’s expansion, while Samsung and vivo experienced a slight decline in their market share. Together, these three brands hold a 53% share of this segment.
The premium segment ($600-$800) saw the highest growth, surging by 86% year-over-year and capturing 4% of the total market. Popular models such as the iPhone 15, iPhone 13, Galaxy S23, and OnePlus 12 were significant drivers. Apple increased its market share to 71%, while Samsung’s share dropped to 19%, a decline from last year’s 30%.
3. Dominance of 5G Smartphones:
5G smartphones dominated the market, with 38 million units shipped in Q3 2024, accounting for 83% of total smartphone shipments. This is a notable increase from 57% in Q3 2023. The average selling price of 5G devices decreased by 20% year-over-year to $292, making them more accessible. The budget 5G segment ($100-$200) captured a 50% market share, with popular models like Xiaomi Redmi 13C, OPPO K12x, and vivo T3x gaining traction.
Channel Performance: Online vs. Offline
Online sales channels saw an 8% year-over-year increase, making up 51% of total shipments. Apple emerged as the second-largest player in the online segment, driven by strong sales of the iPhone 15 and iPhone 13. Offline sales also experienced growth, increasing by 3% year-over-year, as brands offered similar discounts and promotions across both channels.
Brand Highlights: Apple’s Record-Breaking Performance and Market Leaders
Apple achieved a record-breaking quarter in India, shipping 4 million units, primarily due to the popularity of its iPhone 15 and iPhone 13 models. This performance widened the value share gap between Apple and Samsung, with Apple holding a 28.7% share compared to Samsung’s 15.2%.
Vivo retained its lead in the Indian market for the third consecutive quarter, driven by its Y series and newly introduced T3 and V40 models. OPPO recorded the highest growth among the top five brands, with strong sales of its affordable A3x/K12x and mid-range Reno 12 series. The brand Nothing also showed impressive growth, closely followed by Motorola and iQOO.
Market Outlook
Looking ahead, the Indian smartphone market may see a slowdown in Q4 2024 due to reduced demand after the festive season and increased stock levels. Despite this, annual growth for 2024 is projected to remain in low single digits. According to Navkendar Singh, AVP of Devices Research at IDC, sustained growth in 2025 will depend on strong performance in the mass and entry-premium segments ($100-$400), with more affordable launches and enhanced Gen AI capabilities expected to drive consumer interest.
