After witnessing growth in shipments for two consecutive quarters, India’s smartphone market again experienced a 2% YoY decline in shipments in Q2 2024. Despite this overall decline, Xiaomi emerged as the largest smartphone brand in India, outshining Vivo, albeit with a marginal difference in shipment share in terms of volume.
The decline in smartphone shipments in India during Q2 2024 was driven by several factors. A major contributor was the severe heatwave in May and June across the country, which resulted in lower footfalls in offline smartphone stores. As consumers prioritized purchasing essential appliances like air conditioners and refrigerators, spending on other electronics like smartphones took a backseat. This has resulted in inventory build-up.
However, what’s noteworthy is that aggressive promotions, along with discounts and offers by e-commerce platforms, significantly boosted smartphone sales through online channels during the second quarter of 2024.
Before we dig deeper, let’s delve into the performance of the top 5 smartphone brands in India for Q2 2024.
India Smartphone Market Share Q2 2024
- Xiaomi reclaimed its top position in India’s smartphone market in Q2 2024, holding an 18.9% share. This figure is slightly up from 18.8% in Q1 2024 and significantly higher than 15% in Q2 2023.
- Vivo slipped to second place among India’s top five smartphone brands in Q2 2024 after claiming the top spot in Q1 2024. Vivo’s market share declined to 18.8% in Q2 2024 from 19.2% in the previous quarter.
- Samsung retained its third position with an 18.1% market share in Q2 2024, up from 17.5% in Q1 2024. Despite this increase, Samsung’s share has dropped from 18.4% in Q2 2023, when it was leading the market.
- Realme secured the fourth position in India smartphone market with a 12.5% share in Q2 2024. This is a significant increase from a 9.9% share in Q1 2024 and a 12% share in Q2 2023.
- Oppo held an 11.4% market share in Q2 2024, up from 10.1% in Q1 2024 and 11.3% in Q2 2023.
Oppo and Realme frequently swap positions for fourth and fifth place in the Indian smartphone market.
Xiaomi’s Rise to Dominance
The rise of Xiaomi began in Q3 2023 when the company climbed one position to the second spot in India’s smartphone market with a 16.6% share. This was followed by an impressive 18.3% market share in Q4 2023 when it reclaimed the numero uno position. Since then, the Chinese giant has maintained its performance, achieving an 18.8% share in Q1 2024 and an 18.9% share in Q2 2024.
Xiaomi smartphone shipments grew an impressive 23% YoY during the June quarter of this year. This growth was primarily driven by the increased availability of its smartphone offerings across entry-level to affordable premium segments, coupled with the strategic push of flagship handsets, improved marketing, and expanded distribution channels.
Xiaomi’s growth was led by its sub-brand POCO, which was the fastest-growing brand in the INR 10,000 to INR 15,000 (~$120-$180) segment. It achieved a remarkable 318% YoY growth driven by budget-friendly M-series 5G models.
However, what’s surprising is that despite shipping more smartphones than all rivals, Xiaomi’s value share was just 10.8% in Q2 2024, up from 10% in Q1 2024. This indicates that the majority of Xiaomi smartphones shipped during the June quarter were predominantly low-priced models.
Premiumization Trends in India Continued
India is witnessing a notable shift towards premiumization, with consumers increasingly upgrading to higher-value smartphones, bolstered by attractive trade-in values and convenient financing options. This trend has resulted in a remarkable 24% YoY growth in the ultra-premium segment (>INR 45,000) in Q2 2024.
“In Q2 2024, India’s smartphone market achieved its highest ever Q2 value, driven by the ongoing trend of premiumization,” said Counterpoint Research Analyst Shubham Singh.
While Xiaomi has been concentrating on volume, other players, particularly Samsung and Apple, are capitalizing on the growing preference for premium smartphones in India.
Interestingly, in Q2 2024, Samsung maintained its leadership in India’s smartphone market in terms of value for the second consecutive quarter. The Korean giant captured an impressive 24.5% share of the market during the quarter. Due to the high demand for Galaxy devices, Samsung’s ultra-premium segment (>INR 45,000) grew a jaw-dropping 99% YoY in Q2 2024.
Vivo accounted for a 16.8% share of India’s smartphone market in terms of value during the second quarter of 2024. Its high-end devices, such as the V30 series, were well-received by customers prioritising camera quality. However, Vivo’s shipment value share declined from 18% in Q1 2024.
Apple fell to third place on the list of India’s top 5 smartphone brands by value share, holding 16.3% in Q2 2024. Despite being known for its high-priced iPhone lineup, Apple’s value share declined from a notable 19% in Q1 2024. This drop is largely attributed to lower-than-expected demand for the latest iPhone 15 series compared to its predecessors. However, the company is expected to rebound in the next quarter, thanks to recent price cuts across its entire range of iPhones.
The Broader Picture
As India’s smartphone market continues to evolve, the balance between premiumization and affordability remains crucial.
Beyond the top five players, the Indian smartphone market is witnessing a surge in competition. Brands like Nothing (567% YoY growth in H1 2024) and Motorola (88% YoY growth in Q2 2024) are gaining traction in tier 2, tier 3 and beyond for their budget-friendly smartphones.
Furthermore, Indians are buying more 5G smartphones than ever before. As a result, 5G-enabled smartphones accounted for a record 77% share of the total smartphone market in Q2 2024. This surge is largely due to the declining average selling prices of 5G smartphones, with OEMs leaving no stone unturned in launching affordable models packed with high-end features and specs.
It will be interesting to see whether Xiaomi maintains its lead or rivals Vivo and Samsung reclaim their positions in India’s smartphone market in Q2 2024.