India’s smartphone landscape made a significant leap in the first quarter of 2024, achieving a new high in terms of market value, showing an 8% surge in shipment volume and a substantial 18% increase in the market’s worth compared to the same period last year. Counterpoint Research highlighted that the impressive performance was fueled by the industry’s ability to maintain robust inventory levels and leverage the relatively weaker performance of Q1 2023.
In an unprecedented achievement, Vivo emerged as the leader in terms of shipment volume for a single quarter, while Samsung dominated when it came to the overall value, thanks to consumers’ growing inclination for high-end gadgets. The latter’s success was partly due to the consumer excitement around the Samsung Galaxy S24 series and OnePlus 12 series which contributed to the new product launches in the quarter.
The premium smartphone segment, defined as devices priced above Rs 30,000, touched a new milestone, securing a 20% volume share and 51% value share of the entire market. This trend has been attributed to people’s eagerness to adopt more luxurious and feature-rich phones. Enhanced financing options, attractive trade-in deals, and bundles have made it easier for individuals to aim for smartphones equipped with advanced features like artificial intelligence and high-quality cameras.
Samsung and Vivo Lead Amidst Fierce Competition
Market dynamics showcased Samsung’s strategy paying off with its Galaxy S24 series representing a solid mix in its value share portfolio. On the other hand, Apple also witnessed a standout quarter, particularly dominating the premium sector.
Vivo’s historic rise to the top by volume was marked by its robust product offerings and reputation for superior camera technology. Parallel to these individual achievements, the quarter witnessed several smartphone brands expanding their reach through diverse retail strategies, particularly enhancing their presence in physical store channels.
Other notable performers included Nothing, which saw a skyrocketing growth thanks to its new entrant in the mid-segment range, and Motorola, which captured consumer interest with its unique smartphone design and pure Android experience. Xiaomi continued its strong performance with a strategic selection of products, while Transsion and Realme similarly reported solid increases in shipments, driven by their respective strategies to boost offline presence and introduce appealing smartphones at competitive prices.
Importance of India’s Smartphone Market
India is among the fastest-growing smartphone markets in the world due to its large population and increasing internet penetration. Smartphones have become a primary means of internet access, contributing to the market’s expansion. As of early 2020s, India had more than 500 million active internet users. The growing middle class and youth population also drive demand for new technologically-advanced smartphones.
Challenges and Controversies
Challenges in India’s smartphone market include intense competition, a high GST rate on mobile phones, and dependency on imports for electronic components. Additionally, there are controversies around data privacy with the growth of internet usage, and debates regarding the presence of Chinese companies in Indian markets, given geopolitical tensions.
Advantages
The surge in market value benefits the Indian economy, encourages technological innovation, and creates job opportunities in sales, distribution, and after-sales service. Consumers get access to the latest technology, which can augment productivity and connectivity.
Disadvantages
However, e-waste management is an increasing concern with frequent smartphone upgrades. Also, disparities in access to technology persist, as rural areas may not benefit equally from this technological boom.
Suggested Related Link
For those interested in more information on the latest trends in the global smartphone industry, visiting Counterpoint Research can offer insights and detailed market analyses.
Please note that specifics like internet usage statistics and challenges mentioned might have evolved since the knowledge cutoff date, and for the latest information, relevant industry sources or government publications would need to be consulted.
The source of the article is from the blog lisboatv.pt