Introduction
The Indian smartphone market demonstrated resilience and steady growth in 2024, reflecting shifts in consumer preferences, increasing adoption of 5G, and the rising impact of financing options.
According to IDC, the market expanded by 4% to reach 151 million units, with the first half (H1) growing by 7% and the second half (H2) by 2%.
While Q4 saw a 3% dip after five consecutive quarters of growth, the overall market remained robust, fueled by strategic pricing, strong brand performance, and financing innovations.
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Market Growth and Performance
The overall smartphone market grew by 4% in 2024, reaching 151 million units.
H1 witnessed a more pronounced growth rate of 7%, whereas H2 slowed to 2%. Q4 shipments totaled 36 million units, marking a slight decline of 3% after five consecutive quarters of growth.
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Apple’s Breakthrough in India
Apple achieved a significant milestone in India, becoming the fourth-largest market for the company with record-breaking shipments of 12 million units, a remarkable 35% year-on-year (YoY) increase.
In Q4 2024, Apple entered the Top 5 smartphone brands in India for the first time, securing a 10% market share.
The iPhone 15 and iPhone 13 were the highest shipped models, collectively accounting for 6% of total shipments in Q4.
Financing Options Driving Premium Segment Growth
The influence of financing schemes was particularly notable in the mid-range and premium segments.
‘No Cost EMI’ options of up to 24 months gained popularity, making higher-end smartphones more accessible to consumers.
As a result, average selling prices (ASPs) reached an all-time high of $259, albeit with a modest 2% YoY growth—significantly lower than the double-digit increases observed over the past three years.
Strongest Growth in the Entry-Premium and Premium Segments
The entry-premium segment ($200<$400) emerged as the fastest-growing category, witnessing a 35.3% YoY increase and capturing a 28% share, up from 21% in 2023.
Similarly, the premium segment ($600<$800) grew by 34.9%, with its market share rising to 4% from 3%.
and Samsung dominated this segment, driven by previous-generation models such as the iPhone 15/13/14 and the Galaxy S23/S24.
5G Expansion and Price Decline
The penetration of 5G smartphones surged in 2024, with 120 million 5G devices shipped. The share of 5G devices climbed to 79%, a sharp increase from 55% in 2023.
Meanwhile, the average selling price of 5G smartphones fell by 19% YoY to $303, making them more affordable.
The mass budget 5G segment ($100<$200) witnessed a significant surge, doubling in shipments to account for 47% of the 5G market.
Key models driving 5G adoption included the Xiaomi Redmi 13C, Apple iPhone 15, vivo Y28, Apple iPhone 13, and vivo T3X.
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Channel Growth and Market Share Shifts
Shipments to both mainline and online channels grew at an equal pace of 4% YoY, maintaining similar shares at 51% and 49%, respectively.
Samsung continued to dominate the online channel, while Apple climbed to fourth place, with the iPhone 15 being the most shipped online smartphone.
In offline retail, Vivo held its lead, with OPPO and Xiaomi moving into the second and third spots, respectively.
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Vivo Takes Market Leadership in India
Vivo surpassed Samsung to become India’s leading smartphone brand in 2024. The brand’s consistent omnichannel strategy, diverse product portfolio, and strong channel support contributed to its leadership.
Meanwhile, brands like Nothing, Motorola, and iQOO recorded the highest annual growth rates.
Additionally, the share of the top five vendors declined over the past three years, from 76% in 2022 to 65% in 2024, indicating a growing presence of long-tail brands in the market.
Future Outlook for 2025
With a modest single-digit growth in 2024, the India smartphone market expansion in 2025 will depend on strong performance in the mass segment ($100<$200) and an increased range of offerings in the entry-premium segment ($200<$400) to cater to upgraders.
Furthermore, generative AI features are expected to be key differentiators, expanding beyond flagship models to become mainstream across different price segments.
Additionally, online-focused long-tail brands will likely venture into offline retail to sustain growth.
The competitive landscape in 2025 will be shaped by innovations in AI, aggressive pricing strategies, and continued growth in the 5G smartphone segment.
Conclusion
India smartphone market in 2024 highlighted dynamic shifts, with Apple’s growing prominence, Vivo’s market leadership, and increasing 5G penetration.
As financing options continue to influence premium segment adoption and AI-driven innovations emerge, the industry is poised for further transformation in 2025.
The ability of brands to cater to budget-conscious consumers while introducing next-gen features will determine the market’s trajectory in the coming years.
