Smartphone makers in India have shipped around 69 million smartphones in the first half of 2024, with a year-over-year growth of 7.2 percent, according to the Worldwide Quarterly Mobile Phone Tracker by International Data Corporation (IDC). In the second quarter of 2024, smartphone makers shipped 35 million smartphones, with a growth of 3.2 percent.
While it is the fourth consecutive quarter of annual growth in shipments, weak consumer demand and rising device costs continue to restrict a rapid recovery in shipments, International Data Corporation (IDC), a global provider of market intelligence and advisory services, said on Tuesday.
The average selling price of smartphones grew 2.8 percent during April-June, but declined 5.6 percent from the January-March quarter to USD 248.
“In addition to clearing old inventories in the first half of the quarter, vendors also started launching new smartphones, especially in the mid-premium/premium segment (primarily China-based vendors) from mid-quarter onwards, for monsoon sales in July and August,” said Upasana Joshi, senior research manager, devices research, IDC India.
Entry-level smartphones, costing less than $100, saw a sharp decline of 36 percent year-on-year to 14 percent of the share, down from 22 percent a year ago. Budget smartphone shipments, costing between $100 and $200, grew 8 percent year-on-year, with a marginal increase in share to 44 percent from 42 percent. The top three brands were Xiaomi, Realme and Vivo, accounting for 60 percent of this segment, the IDC tracker showed. The share of smartphones costing between $200 and $400 reached 30 percent, up from 22 percent and registered the highest growth of 42 percent year-on-year. OPPO, vivo and Samsung gained significant share compared to the previous quarter, accounting for nearly 60 percent of this segment.
Phones priced between $400 and $600 fell 25% to 4%, down from 5% a year ago. According to IDC, vivo was the biggest gainer with a 25% share, followed by OnePlus and OPPO.
The premium segment, which costs between $600 and $800, maintained a 2% share and declined by 37%. The key models according to IDC’s tracker were the iPhone 13, Galaxy S23FE, iPhone 12, and OnePlus 12. Apple’s share increased year-on-year to 61%, while Samsung’s rose to 24%.
The super-premium segment, phones costing more than $800, continued to grow by 22%, with its share rising from 6% to 7%. The iPhone 15/15 Plus/14/14 Plus together accounted for 77% of shipments, followed by the Galaxy S24/S24 Ultra with an 11% share, according to IDC.
It is noteworthy that, among the 27 million 5G smartphones shipped in the April-June quarter, the share of 5G Smartphone shipments increased to 77 percent, up from 49 percent in the second quarter of 2023, mainly due to increasing affordability.
Among other findings, IDC noted that shipments to online channels grew 8 percent year-on-year and its share increased to 50 percent in April-June 2024 compared to 47 percent last year. Due to severe heatwave conditions in most parts of India, shipments to offline channels declined 2 percent during the April-June period.
“The premiumization trend in the smartphone market, led by Apple and Samsung, coupled with rising device costs, is motivating China-based brands to expand beyond the mass segment. The premium entry segment ($200-$400) is expected to see healthy growth, while the entry level (sub-$100) will remain challenging at least this year despite efforts around launching affordable 5G smartphones,” said Navkendar Singh, associate vice president, Devices research, IDC.
“Furthermore, marketing around GenAI smartphones will be more pronounced, amidst intense promotional activities around them,” Navkendar Singh added.
International Data Corporation (IDC) is a global provider of market intelligence, advisory services, and telecommunications and consumer technology markets. With more than 1,300 analysts worldwide, IDC offers global, regional, and local expertise in technology, IT benchmarking and sourcing, and industry trends and opportunities in more than 110 countries.
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