The Indian smartphone market marked significant progress in Q3 2024, with shipments increasing by 5.6% year-over-year (YoY) to 46 million units, according to IDC’s Worldwide Quarterly Mobile Phone Tracker. Apple, meanwhile, achieved its highest quarterly shipment in India, hitting a record 4 million units, reflecting a growing demand for premium smartphones in the country.

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Key Points:

Steady Growth: The Indian smartphone market grew 5.6% YoY in Q3 2024 with 46 million units shipped.

Apple’s Record: Apple shipped 4 million units, driven by iPhone 15 and 13 models.

Entry-Premium Expansion: $200-$400 range rose 42% YoY, led by OPPO, capturing 28% market share.

5G Dominance: 5G smartphones made up 83% of shipments, with ASP falling 20% YoY to $292.

Sales Channels Growth: Online sales are up 8% YoY; offline are up 3%, supported by promotions.

Market Leaders: vivo retained the lead; OPPO and Nothing saw high growth.

Outlook: Growth may slow post-festive season, with low single-digit annual growth expected for 2024

Key Factors Fueling Market Growth

Seasonal Discounts and Attractive Financing

The market’s growth was spurred by seasonal discounts, flexible financing options, cashback offers, and extended warranties, which made smartphones more affordable. These benefits were extended across online and offline channels, making high-end smartphones more accessible to a broader range of customers.

Rise of 5G Models and Flagship Sales

The launch of 5G-compatible smartphones, especially flagship models from brands like Apple and Samsung, played a major role in attracting consumers. During high-profile online sales events, these premium models were discounted, further driving interest and boosting sales in this segment. IDC’s Senior Research Manager, Upasana Joshi, noted the strong consumer pull towards advanced features and enhanced performance that 5G devices provide.

Key Highlights in Q3 2024

Average Selling Price (ASP) Increase

The average selling price (ASP) for smartphones in India rose modestly by 0.9% YoY, reaching approximately $258. This slight increase reflects the rising preference for devices in the mid-range and premium categories, where consumers are looking for better value and more advanced features.

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Growth in Entry-Premium and Premium Segments

Entry-Premium Segment ($200-$400): This price range experienced a 42% YoY growth, now accounting for 28% of the market compared to 21% a year ago. OPPO led growth in this segment, while Samsung and vivo saw a slight decline. Combined, these three brands hold 53% of the entry-premium market.

Premium Segment ($600-$800): Showing an 86% YoY growth, the premium segment now represents 4% of the market. Models like the iPhone 15, Galaxy S23, and OnePlus 12 are top choices, with Apple’s share rising to 71% in this range.

Strong Uptake of 5G Devices

India’s 5G smartphone market saw notable growth, with approximately 38 million 5G smartphones shipped, representing 83% of all smartphone shipments, up from 57% YoY. The average selling price for 5G smartphones declined by 20%, reaching around $292. Models like the Xiaomi Redmi 13C, iPhone 15, OPPO K12x, and vivo T3x have driven demand in the mass-budget 5G segment, which now holds a 50% market share in the $100-$200 range.

Growth in Online and Offline Channels

Online sales channels recorded an 8% YoY growth, accounting for 51% of all smartphone shipments in Q3 2024. Apple emerged as a major player in online sales, driven by strong performances of the iPhone 15 and iPhone 13. Offline sales increased by 3% YoY, supported by similar promotional offers across both sales channels.

Apple’s Record Performance in India

Apple reached a new milestone with 4 million units shipped, driven largely by the iPhone 15 and iPhone 13 models. This strong performance expanded Apple’s lead in the premium smartphone market, with its value share rising to 28.7%, compared to Samsung’s 15.2%.

Top Performers: vivo, OPPO, and Newcomer Nothing

vivo retained its market lead for the third straight quarter, supported by its Y series and newly launched T3 and V40 series. OPPO showed the highest growth among the top five brands, thanks to popular models in the A3x/K12x and Reno 12 series. The brand Nothing also gained significant traction, along with Motorola and iQOO, showing that emerging brands can achieve substantial growth in this competitive market.

Future Outlook

Despite strong Q3 shipments, India’s smartphone market may see a demand dip post-festive season, with high stock levels anticipated in Q4 2024. Overall growth for 2024 is expected to remain in the low single digits. Navkendar Singh, AVP of Devices Research at IDC, projected that continued growth in 2025 would likely depend on the entry-premium ($100-$400) segment and affordable 5G launches with generative AI capabilities.

Source @ idc.com