CHART: A Look at India's Smartphone Market in Q3 2024
The broader Indian smartphone market grew by 9%, with 47.1 million units shipped, but early festive demand was weaker than anticipated.
- vivo claims top spot in India’s smartphone market for the first time.
- Consumers favoured mid-to-high-end models, while entry-level demand was weak due to rising prices.
- Apple sees demand surge for iPhone 15, alongside emerging brands like Motorola and Google.
In an unexpected twist, vivo has claimed the top spot in India's smartphone market for the first time, securing a 19% market share and shipping 9.1 million units in Q3 2024 according to a Canalys report.
This impressive rise was fueled by vivo’s aggressive strategy across both online and offline channels, along with new product launches in higher price brackets. Strong partnerships and attractive margins for retailers also helped propel the brand ahead of its competitors in a market where budget devices usually dominate.
But it wasn’t all smooth sailing in the broader Indian smartphone market according to the report. Although the market showed positive growth of 9%, totalling 47.1 million units, the early festive season didn’t bring the kind of consumer rush that brands had anticipated. Rising food inflation and cautious urban spending contributed to the sluggish sales, despite early monsoon sales clearing out inventories.
The report also noted a shift in consumer behaviour in the quarter. Replacement and upgrade buyers focused more on mid-to-high-end models, driven by attractive trade-in deals and easy financing options that made premium devices more accessible. However, demand for entry-level devices—traditionally a large part of India’s market—was weak, as rising prices caused many consumers to delay their purchases until after Diwali.
This leaves vendors in a tricky spot moving into the festive quarter. Vendors have built-up inventory, having stocked up devices in anticipation of strong festive demand, which didn't go as planned. Now these brands with excess stock will need to use offline channels, offering heavy discounts and extending margins to retailers to move inventory.
Looking at market performance, Xiaomi, a familiar name in the Indian market, managed to hold onto second place, shipping 7.8 million units.
However, the market landscape was not as favourable for Samsung, which slipped to third place after leading earlier in the year. With only 7.5 million units shipped, a 4% decline YoY, Samsung’s premium offerings didn’t see the same enthusiasm as they did earlier in 2024, marking a notable slowdown in its momentum.
Meanwhile, OPPO and realme rounded out the top five. Although Realme faced challenges in driving demand, Oppo shone as the vendor with the biggest growth in the quarter.
Other brands outside the top ranks saw significant growth as well. Apple, for instance, experienced strong demand for its iPhone 15, particularly in smaller cities. Other emerging players like Motorola, Google, and Nothing also gained traction through distinctive designs, clean software, and broader distribution strategies.
Looking ahead, the report noted that the smartphone market’s future lies in affordable 5G. Canalys highlighted that ultra-low-end 5G devices, priced below ₹10,000 ($119), will be crucial for growth in 2025. However, these phones must offer more than just 5G connectivity as consumers now expect better features even in budget models.
The transition from 4G feature phones to smartphones is also expected to play a key role in driving demand, especially in rural areas. Overall, Canalys projects modest growth in 2025 as the pandemic-driven replacement cycle ends, with the affordable 5G segment expected to lead.
Emmanuel Oyedeji
