India’s Smartphone Shipments Decline in Q2 2024
In the second quarter of 2024, smartphone shipments in India experienced a 2% year-on-year decline, as reported by research firm Counterpoint. Despite this decrease, 5G smartphones saw a record high share of 77% in overall shipments. This surge was the result of decreasing average selling prices for smartphones. Several factors contributed to the decline in smartphone shipments this year, including a heatwave, seasonal slumps, and reduced demand in the previous quarter. In response, original equipment manufacturers (OEMs) organized sales events to clear inventory, resulting in reduced sell-in and a period of degrowth.
Factors Influencing the Decline in Smartphone Shipments
- Heatwave conditions causing lower footfalls in offline channels
- Delayed smartphone purchases due to consumer priorities on appliances like air conditioners
- Summer sales at online channels providing relief to OEMs
Xiaomi Dominates the Market
Xiaomi regained the top spot in smartphone shipments with a 23% increase year-on-year. This growth was attributed to its diverse product range, covering entry-level to affordable premium segments. To solidify its position, Xiaomi focused on promoting flagship handsets, boosting marketing efforts, and expanding distribution channels.
Samsung Leads in Value
Samsung maintained its leadership in value terms, capturing over a quarter of the market. The brand’s new Fold 6 series is expected to sustain this position. By prioritizing value, Samsung witnessed a 99% year-on-year growth in the ultra-premium segment (over Rs 45,000) in Q2 2024. Vivo secured the second spot, driven by its higher-priced models such as the V30 series with enhanced camera features.
Apple’s Ranking and Expectations
Apple ranked third in value terms but is anticipated to bounce back in the next quarter, following recent price reductions across its entire range of iPhones. Realme and Oppo rounded off the top five positions with market shares of 12.5% and 11.4%, respectively.
Hot Take: Forecast for the Smartphone Market 📈
The smartphone market in India witnessed a decline in shipments in Q2 2024, primarily influenced by various factors such as a heatwave and seasonal slumps. However, the emergence of 5G smartphones with a record share offers a glimpse of hope for the future. With key players like Xiaomi and Samsung leading the market, and Apple expected to make a comeback, the smartphone industry in India is poised for an interesting and competitive trajectory in the upcoming quarters. Stay tuned for more updates on the evolving smartphone landscape!
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