The Indian smartphone market witnessed sluggish growth of just 1% in the second quarter of 2024 (Q2), according to market research firm Canalys. This slowdown can be attributed to several factors, including national elections held during the period, subdued seasonal demand, and extreme weather conditions in some parts of the country. Despite the overall stagnation, there were some key shifts in manufacturer rankings.
Consumers Eye Upgrades with 5G on Horizon, Boost Expected for Festive Season
Xiaomi, after relinquishing the top spot for six quarters, made a comeback in Q2. They captured an 18% market share by shipping 6.7 million units, solidifying their position as the leading smartphone brand in India. This resurgence can likely be attributed to their continued focus on offering compelling 5G smartphones in the mass market. Xiaomi is also targeting the flagship and upper midrange market with the launch of the Xiaomi 14 series, Xiaomi 14 Civi.
Vivo came in a close second with 6.7 million units shipped, leveraging their strategy of affordable 5G and feature-rich mid-range models. Samsung maintained a strong presence, securing third place with 6.1 million units shipped. Rounding out the top five were Realme and Oppo (excluding OnePlus) with 4.3 million and 4.2 million units shipped, respectively.
In Q1 2024, India’s smartphone market grew by 15% year-on-year, with shipments reaching 35.3 million units, driven by an improved inventory situation and successful promotional strategies. Samsung led with a 19% market share, followed by Xiaomi and Vivo, while other brands like Apple, Motorola, and Infinix also achieved significant growth.
Looking ahead, Canalys predicts a mid-single-digit growth in smartphone shipments during the upcoming holiday season, fueled by a potential upgrade wave. Their research suggests 44% of Indian consumers plan to buy a new phone within the next year, with many seeking the latest features like 5G.
However, Canalys analyst Sanyam Chaurasia warns of challenges in the Indian market. Frequent discounts during festivals set unrealistic price expectations for consumers, hurting brand value and profitability. Additionally, slow migration from feature phones and a growing second-hand market create obstacles for manufacturers.
(Source)
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