The Indian smartphone market experienced a modest 1% growth in the second quarter of 2024 (Q2), as reported by market research firm Canalys. This deceleration can be attributed to various factors such as national elections, weak seasonal demand, and severe weather conditions in certain regions of the country. Despite the overall market stagnation, there were notable changes in the rankings of smartphone manufacturers.
Consumers Eye Upgrades with 5G on Horizon, Boost Expected for Festive Season
Xiaomi, after losing the top spot for six consecutive quarters, reclaimed its position in Q2 by capturing an 18% market share with 6.7 million units shipped. This rebound is likely due to their persistent focus on delivering attractive 5G smartphones in the mass market. Additionally, Xiaomi is targeting the flagship and upper midrange segments with the launch of the Xiaomi 14 series and Xiaomi 14 Civi.
Vivo closely followed, also shipping 6.7 million units, thanks to its strategy of offering affordable 5G and feature-rich mid-range models. Samsung secured the third position with 6.1 million units shipped. Realme and Oppo (excluding OnePlus) rounded out the top five with 4.3 million and 4.2 million units shipped, respectively.
Market Trends and Future Predictions
In Q1 2024, the Indian smartphone market saw a 15% year-on-year increase, with shipments reaching 35.3 million units. This growth was driven by an improved inventory situation and successful promotional strategies. During this period, Samsung led with a 19% market share, followed by Xiaomi and Vivo. Other brands like Apple, Motorola, and Infinix also experienced significant growth.
Looking forward, Canalys forecasts mid-single-digit growth in smartphone shipments for the upcoming holiday season, driven by a potential upgrade wave. Their research indicates that 44% of Indian consumers plan to purchase a new phone within the next year, with many looking for the latest features such as 5G.
Challenges in the Indian Market
However, Canalys analyst Sanyam Chaurasia highlights several challenges in the Indian market. Frequent discounts during festivals create unrealistic price expectations among consumers, impacting brand value and profitability. Additionally, the slow transition from feature phones to smartphones and the expanding second-hand market pose challenges for manufacturers.
