India Smartphone Market Ships 32 Million Handsets In Q2, 2024: IDC

The India smartphone market saw a 7.2 per cent year-over-year increase in shipments of smartphones, totaling 69 million units.

The India smartphone market saw a 7.2 per cent year-over-year increase in shipments of smartphones, totaling 69 million units. The second quarter (Q2) alone accounted for 35 million units, representing a 3.2 per cent growth compared to the same period last year, a new report said on Tuesday. According to International Data Corporation (IDC) analysts, despite this being the fourth consecutive quarter of growth, a swift annual recovery may be hindered by sluggish consumer demand and rising average selling prices (ASPs).

ASPs Of Smartphones Increase

The ASPs increased by 2.8 per cent year-over-year but experienced a 5.6 per cent quarter-over-quarter decrease, settling at $248.

“The latter half of the second quarter is a prelude to the crucial second half of the year with festive sale period going up till November. Apart from old inventory clearance in the first half of the quarter, vendors also started to launch new smartphones, especially in the mid-premium/premium segment (mostly China-based vendors) from mid-quarter onwards, for monsoon sales in July and August,” Upasana Joshi, Senior Research Manager, Devices Research, IDC India, said in a statement.

IDC further noted that smartphone vendors have been preparing for the upcoming festive sales period by clearing old inventory and introducing new models, particularly in the mid-premium and premium segments. This strategy aims to capitalise on the monsoon sales in July and August.

“The premiumisation trend in the smartphone market, led by Apple and Samsung, coupled with rising device costs is motivating China-based brands to expand beyond the mass segment. The entry-premium segment (US$200<US$400) is expected to see healthy growth, while the entry-level (sub-US$100) will remain challenged at least this year despite efforts around launching affordable 5G smartphones. Also, the marketing around GenAI smartphones will be more pronounced, amid heavy promotional activities around it," said Navkendar Singh, Associate Vice President, Devices Research, IDC.

Entry-Level Declines, Premium, Super-Premium Segment Mixed Results 

Segment-wise, the entry-level market (sub-$100) saw a significant decline of 36 per cent year-over-year, while the mass budget segment ($100-$200) grew by 8 per cent. The entry-premium segment ($200-$400) experienced the highest growth at 42 per cent, increasing its market share to 30 per cent.

The premium and super-premium segments showed mixed results, with the $600-$800 range declining by 37 per cent in unit terms, while the $800+ segment grew by 22 per cent. Apple dominated the super-premium segment with an 83 per cent share, followed by Samsung at 16 per cent. 5G smartphones continued to gain traction, with 27 million units shipped, representing 77 per cent of the market, up from 49 per cent in the second quarter of 2023. The ASPs for 5G devices decreased by 22 per cent year-over-year to $293, making them more accessible to consumers.

Online Vs. Offline Sales Channels

In terms of sales channels, online platforms saw an 8 per cent year-over-year growth, increasing their market share to 50 per cent. Offline channels, however, experienced a 2 per cent decline, partly attributed to severe heatwaves in India during the period.

Vivo, Motorola And Nothing Shine

Among the brands, Vivo led the market for the second consecutive quarter, with strong performance across various price segments. Motorola and Nothing showed the highest and second-highest growth rates, respectively, among all brands. As the Indian smartphone market continues to evolve, industry experts will be closely monitoring how manufacturers adapt to changing consumer preferences and economic conditions in the latter half of 2024.