India’s smartphone market has transformed rapidly over the past decade, with shifting consumer preferences fueling intense competition among global OEMs. Interestingly, Vivo has emerged as India’s top smartphone brand in Q1 2024, outperforming both Samsung and Xiaomi. Vivo’s market share surged to 19.2%, up from 17.5% in Q1 2023 and 17% in Q4 2023. Meanwhile, Xiaomi and Samsung secured the second and third positions, respectively, with 18.8% and 17.5% market shares during the same period.
Vivo’s remarkable growth in the Indian smartphone market is noteworthy, especially when comparing its modest 15% volume share in Q1 2022 to its current standing. Achieving a 4% increase in volume share in just two years is no small feat, given the fierce competition from numerous other OEMs like Samsung, Xiaomi, and Oppo. These competitors have been launching high-tech smartphones at competitive prices, intensifying the competition for Vivo.
So, what has fuelled the increasing popularity of Vivo smartphones in India during the recent quarters?
India’s Top Smartphone Brand Vivo Riding on 5G
The surge in Vivo’s smartphone shipments in India can be primarily attributed to the launch and widespread availability of its cutting-edge 5G devices, such as the Vivo T3 and T3x 5G. The growth is further bolstered by the company’s strategic CMF (Color, Material, Finish) positioning, which focuses on delivering appealing design aesthetics to consumers. Additionally, Vivo’s devices are known for their robust imaging capabilities, making them popular among consumers seeking high-quality camera performance.
Moreover, nearly all major OEMs have tactically diversified their channel strategies, resulting in heightened shipments through offline channels and a subsequent inventory buildup by the end of the quarter.
Premiumization Wave in India Smartphone Market
In a broader context, India’s smartphone shipments in Q1 2024 surged an impressive 8% YoY in volume and an 18% YoY in value, according to Counterpoint Research. The surge in the value share of smartphones was largely driven by the prevailing trend of premiumization, where consumers are not shying away from spending on high-end smartphones facilitated by discounts, EMIs, and other attractive offers.
Vivo, currently the largest smartphone brand in India by volume, witnessed the most substantial rise in the value share of its smartphones among the top four OEMs over the past 12 months. Vivo’s smartphone market share in value surged from a mere 14% in Q1 2023 to 18% in Q1 2024. On the other hand, Samsung’s smartphone value share increased from 23% to 25% during the same period.
Overall, the premium segment, comprising phones priced above INR 30,000, reached its highest-ever volume and value shares, accounting for 20% and 51% of India’s smartphone market in Q1 2024, respectively.
“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.
India Smartphone Market Q1 2024: Other Key Metrics
- Xiaomi’s smartphone shipments grew 28% YoY in Q1 2024, primarily driven by its more focused and efficient product lineup and expanded footprint in offline channels.
- Samsung’s volume share in India’s smartphone market fell from 20.3% in Q1 2023 to 17.5% in Q1 2024. However, its value share increased from 23% to 25% during the period, positioning it at the forefront, ahead of Apple and Vivo.
- Nothing has emerged as the fastest-growing brand in India’s smartphone market, with shipments growing 144% YoY in Q1 2024.
- Despite selling the world’s most expensive smartphones (iPhones), Apple India’s market share dropped from 22% in Q1 2023 to 19% in Q1 2024 in terms of value. One possible reason for the decline could be the increasing competition from Android-based smartphones, such as Samsung and Vivo, in the premium segment.
- As smartphone brands in India increasingly prioritise their offline presence over online channels, the share of offline sales surged to 64%, marking the highest quarterly figure post-COVID.
In a Nutshell
The competition in India’s smartphone market is heating up, with all OEMs leaving no stone unturned to attract consumers across various price segments. Despite India’s reputation as a price-sensitive market, the premium segment is experiencing exponential growth, fueled by e-commerce companies and banks offering enticing offers and discounts on smartphones. Leveraging this shift in consumer behaviour, Vivo has devised a strategy to gain a sizable market share in both the volume and value of smartphones in Q1 2024.
However, the rankings of the top 5 brands in India will likely change in the next two to three quarters, given that only 47% of the population currently owns smartphones, indicating substantial untapped market potential.
