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NEW DELHI: Smartphone shipments in the India market fell 2% year-on-year, affected by heatwave, seasonal slump, and a slower demand that persisted from the first quarter, according to a report released by Counterpoint on Wednesday. During the quarter, 5G shipments in India hit a record 77% share of the overall market, driven by declining average selling prices (ASPs).
In response, original equipment manufacturers (OEMs) hosted sales events in the April to June quarter to clear inventory leading to a reduced sell-in and a period of de-growth, the research agency said.
“Heatwave conditions in various regions led to lower footfalls in offline channels and delayed smartphone purchases as consumers prioritized appliances like air conditioners and refrigerators. This reduced demand caused an inventory build-up,” said Senior Research Analyst Shilpi Jain.
However, summer sales at online channels, a good harvest, and aggressive promotions towards the end of the quarter provided relief to OEMs, helping close the quarter on a better note than at the beginning, she said.
Canalys had separately reported that India’s smartphone shipments grew only 1% year-on-year in the second quarter of 2024, totaling 36.4 million units.
Xiaomi reclaimed the first rank with a volume share of 18.9% in Q2 2024, up from the 10% it had in Q1 2024. In Q2 2023, the brand held a share of 15%, as per the research firm’s data, while as per Canalys, the brand regained the top spot after six quarters – or for the first time since Q1 2023 when it ranked fourth with a volume share of 16% and showed a decline of 38%.
Xiaomi’s shipments were up by 23% year-on-year, driven by a streamlined and focused portfolio that spans from the entry-level to affordable premium segments. To further solidify its position, the company employed a strategy to push flagship handsets, improve marketing and expand distribution channels, according to Jain.
Vivo followed closely in the second rank with an 18.8% share, while Samsung slipped to the third position with a share of 18.1%, Counterpoint data showed.
Realme and Oppo closed the charts at fourth and fifth ranks with a share of 12.5% and 11.4%, respectively.
By contrast, Research Analyst Shubham Singh said the smartphone market achieved its highest-ever value in Q2 2024 driven by the premiumisation trend as consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes.
“This resulted in a 24% YoY growth in the ultra-premium (>INR 45,000) segment,” Singh said.
Samsung led the market with a 25% value share. Its new Fold 6 series is expected to sustain this leadership. With the brand focusing on value over volume, its ultra-premium segment (>Rs 45,000) grew by 99% year-on-year in Q2 2024.
Vivo and Apple ranked second and third in terms of value share.
Singh said Apple is expected to rebound in the September quarter driven by the recent price cuts across the entire range of iPhones.
Additionally, Nothing was the fastest-growing brand in the six months ending June 30, witnessing a 567% year-on-year rise in shipments.
“While I believe that market share should be the result of creating great products, not the end goal, I’m thrilled to see this growth. This success demonstrates that we are effectively executing our strategy. The most exciting part is that this achievement is fueling Nothing’s innovation, which will be a core focus for 2025,” said Carl Pei, co-founder and CEO, Nothing.
Motorola grew by 88% year-on-year, while Poco was the fastest-growing brand in the Rs 10,000 to Rs 15,000 segment with a 318% year-on-year growth in shipments.
MediaTek led India’s smartphone chipset market with a 54% share. Qualcomm led the premium segment with a 33% share.
The Rs 20,000-Rs 30,000 and >Rs 45,000 price bands saw the fastest growth at 25% and 24% year-on-year, respectively.
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