India’s Smartphone Market Grows 3% YoY In Q3 2024: Report

India's smartphone market saw a 3 per cent year-over-year (YoY) growth in Q3 2024, driven by increased demand for 5G and premium smartphones, according to CyberMedia Research’s (CMR) India Mobile Handset Market Review Report. Despite global economic challenges, mid-range and premium smartphones continue to be popular among Indian consumers.

The premium smartphone segment, priced between Rs 25,000 and Rs 50,000, registered a 57 per cent YoY growth. Similarly, the Value-for-Money (VFM) segment, covering smartphones priced between Rs 7,000 and Rs 24,999, saw a 66 per cent YoY increase, underscoring the strong demand for affordable high-performance devices. 

According to CMR Analyst Menka Kumari, this growth is a testament to the market’s adaptability, with consumers increasingly favoring 5G and advanced features even in mid-range models. The demand for high-performance devices is evident, particularly in the Rs 10,000 to Rs 13,000 price band, where 5G smartphone shipments grew by over 100 per cent YoY.

5G smartphone shipments now account for 82 per cent of the market, marking a 49 per cent YoY growth, with Vivo leading in the 5G segment with an 18 per cent share, followed closely by Samsung at 17 per cent. In the overall smartphone market, Xiaomi claimed the top position with a 17 per cent market share, driven by models like Redmi 13C 5G and Redmi 13 5G. Vivo and Samsung followed in second and third places, holding 16.3 per cent and 16.2 per cent market shares, respectively, with OPPO and Realme rounding out the top five.

The feature phone market, however, saw a decline of 14 per cent YoY, led by a 46 per cent drop in 4G feature phone shipments. This was offset by a modest 1 per cent decline in 2G feature phones, which continue to find demand in rural and semi-urban areas. iTel Mobile retained the lead in the feature phone segment.

Among other market highlights, Apple reported a notable 27 per cent YoY growth in shipments, while new entrant Nothing saw remarkable growth of approximately 646 per cent. Motorola also demonstrated strong growth at 74 per cent, appealing to value-conscious customers. On the chipset front, MediaTek dominated with a 53 per cent share of India’s smartphone chipset market, while Qualcomm led the premium segment with a 38 per cent share.

Looking ahead, CMR projects the smartphone market in India to grow by 7 to 8 per cent in 2024, driven by strong demand for premium, 5G and AI-enabled smartphones. According to Pankaj Jadli, an analyst at CMR, the competition among brands will likely intensify as they focus on making affordable 5G devices more accessible. The arrival of AI-enabled smartphones is also expected to further influence consumer choices, driving the market’s growth in upcoming quarters.