Indian smartphone market witnessed only slight uptick in Q2 2024
The Indian smartphone market saw a modest growth of 1% in the second quarter of 2024, with shipments totaling 36.4 million units, according to research by Canalys. This growth rate lags behind the global smartphone market which experienced a 6% increase during the same period. Despite this slight rise, inventory levels in India remained high, leading to diverse strategies among vendors.
Vendors adopt varied strategies amid high inventory levels
In response to the high inventory levels, vendors adopted different strategies. Some launched new devices in higher price segments, while others focused on clearing out existing stocks in preparation for the festival season. Sanyam Chaurasia, Senior Analyst at Canalys, observed that top mass-market brands expanded their mid-high-end portfolios and planned to use early monsoon sales to clear inventory, making room for new models ahead of the festive season.
Xiaomi reclaims top spot in Indian smartphone market
Xiaomi emerged as the market leader in Q2 2024, securing an 18% share with 6.7 million units shipped, marking a significant comeback after six quarters. Vivo closely followed Xiaomi, also shipping 6.7 million units, largely due to its successful range of affordable 5G and mid-range models. Samsung ranked third with 6.1 million units shipped, while Realme and OPPO (excluding OnePlus) completed the top five, shipping 4.3 million and 4.2 million units respectively.
Analyst highlights need for product innovation, ecosystem development
Chaurasia emphasized the need for vendors to prioritize business viability over market share and focus on providing strong value propositions for consumers. He stated that brands must prioritize product innovation, ecosystem development, and personalized experiences to ensure consistent year-round shipment upgrades. The analyst also pointed out a significant shift toward 5G device upgrades among consumers.
Consumer study reveals shift toward 5G device upgrades
A recent consumer study by Canalys revealed that 44% of consumers plan to purchase a new device within the next 12 months. A majority of these consumers are 'upgrade buyers' who are keen on the latest innovations, particularly those related to 5G advancements. Despite showing only slight growth, the Indian smartphone market is expected to see mid-single-digit growth in the upcoming festive season and overall shipments this year.
