Insight: Smartphone sales stagnate in India but premium phones drove record profits in 2024
Smartphones priced above ₹30,000 ($350) accounted for one in five devices sold.
The way Indians buy smartphones is changing. In 2024, it wasn’t about buying more phones—it was about buying better ones. Fewer people felt the rush to upgrade every year, and budget models lost their appeal. But when consumers did make a purchase, they spent more, choosing sleek, high-end devices packed with cutting-edge features.
This shift pushed India’s smartphone market to its highest-ever revenue, even as overall shipments barely grew – seeing a marginal 1% YoY increase over 2023, totalling 153 million units shipped.
Per volume shipped, Vivo claimed the top spot for the first time, while Xiaomi staged a comeback. Samsung—despite leading globally—slipped to third place in India. While its premium devices performed well, its budget models lost traction, allowing its Chinese rivals including Oppo to gain ground.
Meanwhile, Apple was the biggest winner in value terms. Riding on the success of the iPhone 15, which was the highest-selling phone in Q4, it also broke into the top five by volume for the first time during the quarter.
But while legacy brands fought for position, Nothing, a London-based phone maker, made waves as the fastest-growing brand of the year, skyrocketing with 577% growth, thanks to its bold design choices and a strong push from its sub-brand CMF.
With more people upgrading to premium devices, market value surged even as unit shipments remained nearly flat. Smartphones priced above ₹30,000 ($350) saw double-digit growth, now accounting for one in five devices sold, fueled by easy financing options and trade-in programs. Meanwhile, inflation took a toll on the budget segment (under ₹10,000), where sales plummeted by a third.
The definition of what makes a smartphone desirable is also shifting. Hardware is no longer the sole differentiator. GenAI-powered features, Dolby Vision, immersive audio, and hyper-personalized experiences are setting premium devices apart. At the same time, the 5G wave continued to build momentum, with 5G penetration reaching an all-time high of 78%.
Looking ahead, the industry is at an interesting crossroads. Shipments may continue to grow at a slow pace, but the real action will be in how brands innovate beyond hardware. AI-powered personalization, ecosystem integrations, and new ways of consuming and creating content are set to define the future of the smartphone market in India.
