India's Smartphone Market Grows 8% In Q1: Report

The domestic smartphone market grew 8 per cent YoY (year-on-year) in Q1 2024 in terms of volume, with a significant shift towards the premium segment, according to the latest research from Counterpoint’s Monthly India Smartphone Tracker. For the first time, premium smartphones captured a 20 per cent share in terms of volume and a 51 per cent share of the overall market value. The trend reflects a growing consumer preference for high-end devices (priced at Rs 30,000 and above).

The firm noted that over one-third of mid-tier consumers are willing to upgrade to the premium segment. Factors driving this trend include affordable financing schemes, better value for trade-ins, and bundled schemes, along with the demand for top-tier features such as AI, gaming, and imaging enhancements.

Overall, the smartphone shipments in the quarter grew 18 per cent in terms of value, in the domestic market. While the volume growth of 8 per cent was primarily driven by healthy inventory levels and the low base of Q1 2023, value growth was driven by the ongoing premiumisation trend and new launches during the quarter, such as the Samsung Galaxy S24 and OnePlus 12 series.

Samsung led the chart with 25 per cent volume share and 23 per cent in terms of value, closely followed by iPhone maker Apple with 19 per cent volume and 22 per cent share in value terms. At $425, Samsung’s ASP was its highest ever, driven by its leading position in the less than Rs 20,000 segment. This can be attributed to a stronger mix of its newly launched Galaxy S24 series due to its features such as GenAI, and the newly revamped A series, along with the increasing popularity of Samsung’s financing schemes. Apple, on the other hand, also had a record quarter in India in terms of value, leading the premium segment both in value and volume terms, driven by the latest iPhone 15 series, especially in offline channels. During the quarter, vivo also captured one of the top spots by volume for the first time ever, with a 19 per cent share driven by its 5G leadership and CMF (Color, Material, Finish) positioning, along with strong imaging capabilities.

“The onset of 2024 brought a promising start for OEMs, with better inventory levels allowing them to fill channels with multiple new launches. However, sales were less than expected due to a drop in retail footfalls and a section of consumers cutting down on discretionary spending,” said Research Analyst, Shubham Singh. Going forward, the firm expects India’s smartphone market to grow in single digits in 2024, driven by strong premiumisation, 5G adoption and post-COVID upgrades.