The Indian smartphone market witnessed a significant milestone in 2024, with wholesale revenue growing 9% year-over-year (YoY) to reach an all-time high, according to Counterpoint Research. Despite just a 1% YoY increase in smartphone shipments, reaching 153 million units, the market’s value surged due to a shift towards premium devices and strong consumer demand for high-end models.

Key Highlights of the Indian Smartphone Market in 2024

The Indian smartphone market’s wholesale revenue increased by 9% YoY in 2024.

Apple led in terms of market value for the second consecutive year.

vivo became the top brand in volume share for the first time.

75% of smartphones shipped in 2024 were 5G-enabled.

The iPhone 15 was the most shipped smartphone in Q4 2024.

Market Trends and Growth Factors

According to Counterpoint’s Monthly India Smartphone Tracker, the Indian market started strong in early 2024, aided by stable inventory levels and a positive outlook. However, macroeconomic challenges and reduced consumer spending affected growth in the latter half of the year. Despite this, demand for premium devices, priced above ₹30,000, saw double-digit growth, significantly boosting revenue.

Senior Research Analyst Shilpi Jain noted that the market is maturing, with smartphone replacement cycles getting longer as mid-range and budget phones continue to improve. She highlighted that accessibility through trade-in offers and financing options has fueled the premiumization trend. However, the entry-level segment (under ₹10,000) saw a sharp one-third decline due to inflationary pressures.

Looking ahead, the market is expected to grow at a single-digit rate in 2025, with revenue projected to reach new highs as premiumization continues to drive value growth.

Brand Performance and Competitive Landscape

vivo secured the top spot in volume share for the first time, registering a 16% YoY growth, bolstered by its offline expansion and support from its sub-brand iQOO.

Xiaomi reclaimed the second position, witnessing a 6% YoY growth after two years of decline.

Samsung fell to third place due to a weaker presence in budget segments, though its premium models, particularly the Galaxy S series, performed well.

OPPO dropped to fourth, facing a 10% decline due to initial product and channel challenges. However, it rebounded in the latter half of the year with the success of its K and A series.

Apple had another record-breaking year, ranking in the top five for the first time in Q4 2024. The iPhone 15 was the highest-shipped smartphone in the last quarter, solidifying Apple’s dominance in the premium segment.

Despite the strong performance of premium brands, overall smartphone shipments declined by 4% YoY in Q4 2024, attributed to post-festive season slowdowns and inventory clearance efforts by OEMs. However, market value increased by 5%, driven by rising demand for high-end devices.

Additional Market Insights

Fastest-growing brands: Nothing recorded an astounding 577% YoY growth in 2024, driven by its popular 2a series and sub-brand CMF. Motorola also saw an 82% YoY increase, doubling its shipments compared to 2022.

5G adoption: 5G smartphone shipments reached 78% of the total market, thanks to affordable 5G chipsets entering the entry-level segment.

Chipset market share: MediaTek led the chipset market with a record 52% share, followed by Qualcomm at 25%.

Feature phone dominance: itel led the feature phone market with a 32% share, driven by strong distribution in tier-2 and rural areas.

Conclusion

India’s smartphone market is evolving, with a growing preference for premium devices driving record-breaking revenue. While shipment volumes remain stable, value growth continues due to increasing demand for high-end features and AI-powered smartphones. With brands focusing on premiumization and innovation, 2025 is poised to witness further shifts in consumer preferences and technological advancements in the industry.

Source @ counterpointresearch