- Indian market registers 9% growth in third quarter to 47.1m units.
- Demand for smartphones ahead of the festivities remained subdued, largely due to escalating food inflation and a decline in urban spending on consumer durables.
- Canalys anticipates that organic growth in the Indian smartphone market will be significantly driven by the introduction of ultra-low-end 5G devices—particularly those priced under Rs10,000.
Chinese smartphone maker vivo emerged as the leading vendor for the first time, overtaking Samsung and Xiaomi, in the third quarter in India on higher-priced models and aggressive channel margins.
Vivo captured 19 per cent market share with the shipment of 9.1 million units out of the total shipments of 47.1 million units.
Xiaomi secured the second position with 7.8 million units shipped and captures 17 per cent share, primarily driven by its budget 5G lineup, while Samsung followed closely with 7.5 million units and with 16 per cent market share.
Other notable players included OPPO, which shipped 6.3 million units (excluding OnePlus), and realme, which shipped 5.3 million units, thus rounding out the top five vendors.
Calculated effort
Research by Canalys has documented a noteworthy nine per cent growth in the Indian smartphone market during the third quarter of 2024 to 47.1 million units, attributed to vendors efficiently managing their inventory through early monsoon sales, preparing for the anticipated festive season.
Despite this proactive strategy, the demand for smartphones ahead of the festivities remained subdued, largely due to escalating food inflation and a decline in urban spending on consumer durables.
Analyst Sanyam Chaurasia highlighted that vivo’s ascent was powered by its innovative product launches in higher price segments and a broadening of its online sales channels. Both vivo and OPPO have successfully leveraged their online portfolios to exceed traditional sales through offline channels.
The ongoing strategy among leading brands to expand their mid-to-high range offerings demonstrates a calculated effort to clear existing inventories during the festive season.
Despite the overall growth, the sluggish demand for entry-level models reflects consumer hesitation, induced by rising prices and broader economic challenges. Many consumers have opted to postpone purchases until after the Diwali celebrations.
Focus on offline sales
Consequently, brands are focusing on offline sales in anticipation of heightened demand during this critical shopping period.
Chaurasia noted that while vendors have ramped up shipping to meet festive demand, the unanticipated low traction may result in an inventory surplus, necessitating aggressive discounting strategies as well as enhanced channel margins to manage stock levels effectively in the latter half of 2024.
Looking ahead to 2025, Canalys anticipates that organic growth in the Indian smartphone market will be significantly driven by the introduction of ultra-low-end 5G devices—particularly those priced under Rs10,000.
Although challenges regarding component availability persist, the impending market entry of these affordable devices is expected to satisfy consumer demand.
Nonetheless, product differentiation will be essential, as consumers are increasingly discerning and inclined to invest in smartphones that offer substantial features over mere 5G capabilities.