India’s Smartphone Shipments Grow 11.5% In Q1 2024, Registers 34 Mn Shipments

India’s smartphone market saw significant growth in the first quarter of 2024, with 34 million smartphones shipped, a 11.5 per cent increase year-over-year (YoY). 

This growth points to a third consecutive quarter of expansion in shipments, according to the International Data Corporation’s (IDC) analysis. The average selling price (ASP) of smartphones remained stable at USD 263, breaking the streak of strong ASP rise observed in previous quarters. Despite this, the market saw notable shifts in segment performances.

While the entry-level segment (sub-USD 100) experienced a decline of 14 per cent YoY, the mass budget segment (USD 100<USD 200) witnessed a 22 per cent growth YoY, reaching 48 per cent share. Xiaomi, vivo and Samsung emerged as dominant players in various price segments.

In terms of 5G adoption, the IDC report found a significant increase, with 23 million 5G smartphones shipped in Q1 2024, accounting for 69 per cent of total smartphone shipments. This growth in 5G adoption led to a decline in the average selling price of 5G smartphones by 21 per cent YoY, reaching USD 337.

Online channels also saw substantial growth, with shipments increasing by 16 per cent YoY and accounting for 51 per cent of total shipments in Q1 2024. Brands like Poco, vivo, and Motorola registered significant growth in online channels.

In terms of brand performance, vivo emerged as the top brand, surpassing Samsung, by diversifying its portfolio across price segments and channels. Additionally, Apple achieved record shipments in Q1 2024, driven by attractive financing options and discounts.

“Several new launches across multiple price segments happened during the quarter, coupled with increased promotional activities, particularly around premium offerings. Brands continued their focus on microfinancing schemes to drive affordability. eTailers organized several sales events and offered discounts on models nearing their end-of-life (EOL), resulting in increased demand and lean inventory,” Upasana Joshi, Senior Research Manager, Client Devices, IDC India said in a statement.

Growth In Premium Segment

The entry-premium segment (USD 200<USD 400) saw remarkable growth, surging from 20 per cent to 23 per cent and marking a 25 per cent YoY increase. Oppo and realme emerged as key players in this segment, collectively commanding nearly 30 per cent market share.

The premium segment (USD 600<USD 800) held a 2 per cent share and experienced a 21 per cent decline in unit terms. Noteworthy models such as the iPhone 13, Galaxy S23FE/S23, iPhone 12 and OnePlus12 were prominent in this segment. Apple maintained its dominance with a 45 per cent share, while Samsung significantly increased its presence, capturing 44 per cent of the market, up from 16 per cent in the previous year.

The super-premium segment (USD 800+) showed the highest growth rate, with a 44 per cent increase. This segment expanded its share from 7 per cent to 9 per cent of the overall market. The iPhone14/15/14 Plus/15 Plus collectively dominated this segment, capturing 64 per cent of shipments. Samsung’s Galaxy S24/S24 Ultra/S23/S24+ models followed closely, securing a 25 per cent share. Apple continued to lead the super-premium segment with a commanding 69 per cent share, while Samsung maintained a significant presence at 31 per cent.

Looking ahead, IDC estimates a modest overall annual growth in the mid-single digits for the Indian smartphone market in 2024. However, challenges such as attracting first-time smartphone users and addressing the impact of the secondhand market persist. Moreover, the market’s landscape is evolving, with smaller brands and sub-brands gaining traction, leading to a weakening concentration among the top brands.