Counterpoint’s latest report on India’s smartphone shipments for the second quarter (Q2) of 2024 reveals a 2% decline compared to the same period last year. This downturn is attributed to several factors, including extreme heat waves, a seasonal slowdown, and shifting consumer priorities. Despite the overall decline, certain brands continue to maintain strong market positions, showcasing their resilience and strategic adaptations.
Factors Behind the Decline
1. Heat Waves and Seasonal Slowdowns
One of the key reasons for the drop in smartphone shipments is the extreme heat waves across various regions. These heat waves have led to fewer people visiting offline stores, as they prefer to stay indoors to avoid the harsh weather. Additionally, the seasonal downturn typically seen in Q2 has further contributed to the reduced demand.
2. Shift in Consumer Priorities
With rising temperatures, consumers have prioritized buying electrical appliances like air conditioners and refrigerators over smartphones. This shift in spending has caused a delay in smartphone purchases, leading to an accumulation of unsold inventory.
Brand Performance in Q2 2024
Xiaomi Takes the Lead
Despite the overall decline in shipments, Xiaomi has managed to reclaim the top spot in the Indian market. With a shipment share of 18.9%, Xiaomi leads the pack, showcasing its strong presence and consumer preference in India.
Vivo and Samsung Follow Close Behind
Vivo secured the second spot in the Indian smartphone market in Q2 2024, capturing an 18.8% market share. This narrow gap with Xiaomi underscores Vivo’s strong performance and competitive strategy. Vivo’s success can be attributed to its focus on both mid-range and high-end smartphones, appealing to a broad spectrum of consumers. The brand’s emphasis on camera technology and innovative features has resonated well with Indian users, further solidifying its market position.
Samsung, while slipping to third place with an 18.1% market share, remains a formidable presence in the Indian smartphone market. The brand’s decline in rank is attributed to intensified competition and shifting consumer preferences. Despite the decline in market share, Samsung continues to leverage its strengths in technology and customer trust. The company’s focus on incorporating advanced features such as high-resolution displays, versatile camera systems, and robust performance has helped it maintain a loyal customer base. Samsung’s extensive service network and reliable after-sales support further contribute to its strong market presence.
Apple’s Position
Apple did not make it to the top 5 list in Q2 2024. With India being the second largest mobile phone market in the world, this is a significant miss for Apple. Apple’s market share in India’s overall smartphone market remains relatively small, at about 5.1%. However, there is a growing segment for premium smartphones, which now constitutes 10% of total shipments, up from 4% before the pandemic. Apple has been strategically positioning itself to benefit from this trend by increasing its retail presence and local manufacturing efforts.
High-End Smartphone Segment
While the overall market saw a decline, the high-end smartphone segment (models priced above 45,000 Indian rupees) experienced significant growth. Shipments of high-end models in India increased by 24% year-on-year in Q2 2024. This growth indicates a rising demand for premium smartphones among Indian consumers.
In terms of high-end smartphone shipments, Samsung leads the market with a 25% share. Vivo and Apple follow in second and third place, respectively. This dominance in the high-end segment underscores Samsung’s strong position in the premium market.
Conclusion
The Q2 2024 report from Counterpoint highlights the challenges faced by the Indian smartphone market, including reduced shipments due to heat waves, seasonal downturns, and shifting consumer priorities. Despite these challenges, Xiaomi remains at the top of the mobile phone market in India, with Vivo and Samsung continuing to compete fiercely for market share. Looking ahead, it will be crucial for smartphone brands to adapt to changing consumer preferences and market conditions. The high-end segment’s growth in India indicates a shift towards premium models, while the overall market’s recovery will depend on addressing the factors that led to the decline in shipments. As brands continue to innovate and compete, the smartphone market is poised for dynamic changes in the coming quarters.
Top Smartphone Brands in India – Q2 2024
| Rank | Brand | Market Share (%) |
|---|---|---|
| 1 | Xiaomi | 18.9 |
| 2 | Vivo | 18.8 |
| 3 | Samsung | 18.1 |
| 4 | Realme | 12.5 |
| 5 | Oppo | 11.4 |
