NEW DELHI: The India smartphone market grew by a staggering 12% year-on-year in Q3 2024, hitting an all-time record high for a single quarter, driven by the premiumisation trend as more consumers purchased expensive, artificial intelligence (AI)-enabled smartphones from the likes of Samsung and Apple, according to the latest report released by Counterpoint Research on Wednesday.
Samsung led the market (by value), at the top position, with a share of 22.8% in the July-September quarter, as it prioritised its flagship Galaxy S-series, enhanced its value-driven portfolio, and integrated AI features into its mid-range and affordable premium models in the A-series, encouraging consumers to upgrade to higher price segments, the research firm said.
Apple closely followed Samsung at the second spot with a 21.6% value share, as it aggressively expanded into smaller cities, driving significant value growth with an increased focus on newer iPhones. Its performance was further boosted by the flagship iPhone 15 and iPhone 16 ahead of the festive season, the market tracker said.
“The market is increasingly shifting toward value growth, fueled by a premiumization trend, which, in turn, is supported by aggressive EMI offers and trade-ins,” said Senior Research Analyst Prachir Singh. “As consumers increasingly invest in premium smartphones, Apple has cemented its status as the top choice for premium buyers in India, supported by its aspirational image and expanding footprint,” he added.
Vivo, Oppo and Xiaomi rounded off the top-five chart in the value market with a share of 15.5%, 10.8%, and 8.7%, respectively.
By volume, however, the India smartphone market grew by only 3% year-on-year in the third quarter of 2024, driven by the earlier onset of the festive season compared to 2023. “OEMs proactively filled channels, ensuring that retailers were well-prepared for the expected surge in sales during the festive season. However, festive sales started at a slower pace compared to the last year,” the research firm said.
First-ranked Vivo expanded its share, from 16% in Q3 2023 to 19.4% in Q3 2024, due to healthy inventory levels throughout the year, helping it reclaim the top spot in the market with a 26% year-on-year growth. Its growth was also supported by a diverse product portfolio and the successful expansion of its T-series.
Second-ranked Xiaomi grew by 3% year-on-year growth, expanding its market share marginally from 16.6% in Q3 2023 to 16.7% in Q3 2024, driven by its balanced focus across both online and offline channels.
Third-ranked Samsung’s market share contracted from 17.2% in Q3 2023 to 15.8% in Q3 2024. Fourth-ranked Oppo took a 13.4% share of the overall volumes, while Realme, in the fifth position, saw its share erode from 14.4% in Q3 2023 to 11.3% in Q3 2024.
“During Q3 2024, several sales events were hosted by both OEMs and channels. These included parallel offline campaigns, which helped some of the OEMs clear existing inventory. This, in turn, enabled them to fill channels with multiple new launches ahead of the festive season,” said Research Analyst Shubham Singh.
He added that Oppo emerged as the fastest-growing brand among the top five. “The brand was supported by new product launches and an aggressive market strategy,” Singh said.
Nothing was the fastest-growing brand for the third successive quarter, recording an impressive 510% annual growth in shipments in Q3 2024 and entering the top 10 for the first time, fueled by portfolio expansion, strategic market penetration, and partnerships with over 800 multi-brand outlets across more than 45 cities, as per Counterpoint.
Motorola recorded 87% year-on-year growth in Q3 2024, owing to the success of budget-friendly models with a focus on CMF (color, material, finish), rising demand from smaller cities and its expanding market footprint.
5G smartphones achieved their highest-ever share of 81% in overall shipments. In the Rs 10,001-Rs 15,000 segment (~$120-$240), 5G penetration reached 93%, with brands focusing on introducing 5G models in the budget segment, the research firm said.
