The smartphone market in India saw a modest revival in the first quarter of 2024, with smartphone shipments ranging from 32.5 million to 35 million units, according to research by Mint. This growth comes after two years of declining numbers, offering much-needed relief for brands and retailers.
Leading players in the market, such as Samsung, Xiaomi, and Vivo, will benefit from this revival. These brands have seen a decline in domestic device shipments since 2021 and will now have the opportunity to maintain their focus on India as a key market.
The estimated shipment numbers are based on preliminary market data, with detailed reports from Counterpoint India and IDC India expected in the coming weeks. However, both Samsung and Xiaomi declined to comment on the current market situation.
Despite the modest growth in shipments, the increase in average selling prices (ASPs) has been a positive development for India’s leading smartphone brands. The ASP has risen from $199 to $255, generating about $8.3 billion in market value in the first quarter of 2024. This represents a 28% increase in the value of gross smartphone shipments in four years, a significant growth in value considering weak consumer sentiment.
However, industry veterans emphasize the need for caution due to macroeconomic concerns that continue to impact consumer sentiment. Strategic product launches have been limited, and there has been a noticeable shift towards the refurbished and second-hand smartphone market. These trends have been facilitated by the rise of organized retailers in this segment.
Furthermore, the absence of the election boost, typically seen every five years, has also affected market demand. Analysts note that government-driven market demand is unlikely until the general elections are over. This has raised concerns about the sustainability of the current market dynamics, especially in a value-driven market like India.
While the first quarter of 2024 shows promising growth, industry experts emphasize the need to navigate through ongoing challenges and fluctuations in consumer sentiment to ensure long-term success in the Indian smartphone market.
The smartphone industry in India is experiencing a revival in the first quarter of 2024, with smartphone shipments ranging from 32.5 million to 35 million units according to research by Mint. This is a positive development for brands and retailers, as it comes after two years of declining numbers.
Leading players in the market, such as Samsung, Xiaomi, and Vivo, are expected to benefit from this revival. These brands have seen a decline in domestic device shipments since 2021, and the current market situation provides an opportunity for them to regain their focus on India as a key market.
It is important to note that the estimated shipment numbers are based on preliminary market data, and more detailed reports from Counterpoint India and IDC India are expected in the coming weeks. Notably, both Samsung and Xiaomi declined to comment on the current market situation.
While there is modest growth in smartphone shipments, there has been an increase in average selling prices (ASPs) for India’s leading smartphone brands. The ASP has risen from $199 to $255, resulting in about $8.3 billion in market value in the first quarter of 2024. This represents a significant 28% increase in the value of gross smartphone shipments in just four years, despite weak consumer sentiment.
However, industry veterans caution that there are macroeconomic concerns that are still impacting consumer sentiment. Strategic product launches have been limited, and there is a noticeable shift towards the refurbished and second-hand smartphone market. This trend has been facilitated by the rise of organized retailers in this segment.
Furthermore, the absence of the election boost, which is typically seen every five years, has also affected market demand. Analysts believe that government-driven market demand is unlikely until the general elections are over. This raises concerns about the sustainability of the current market dynamics, especially in a value-driven market like India.
Despite the promising growth shown in the first quarter of 2024, industry experts emphasize the need to navigate through ongoing challenges and fluctuations in consumer sentiment to ensure long-term success in the Indian smartphone market. It is crucial for brands and retailers to understand and respond to macroeconomic factors to maintain their foothold in this competitive market.
For more information related to the smartphone industry and market forecasts in India, you can visit the following link: Mint – Smartphone Market in India.
The source of the article is from the blog guambia.com.uy