The Indian smartphone market experienced a marginal growth of 1% in the second quarter of 2024, reaching a total of 36.4 million units shipped. This subdued growth was attributed to various factors, including elections, dampened seasonal demand, and adverse weather conditions in certain regions. Despite this, vendors are gearing up for the upcoming festive season, aiming to optimize inventory levels and introduce new models to capitalize on increased consumer spending.
Shifting Strategies and Market Leaders
Some vendors focused on expanding their offerings in higher price segments, while others prioritized clearing existing stocks to make way for new devices ahead of the festive season. Notably, Xiaomi regained its top position after six quarters, securing an 18% market share with 6.7 million units shipped. This success was fueled by the company’s refreshed Redmi Note 13 Pro series and the newly launched Xiaomi 14 Civi, which appealed to consumers with its camera capabilities and unique design.
Vivo followed closely, matching Xiaomi’s shipment figures of 6.7 million units, driven by its affordable 5G and mid-range models. Samsung secured the third spot with 6.1 million units shipped, while realme and OPPO (excluding OnePlus) completed the top five with 4.3 million and 4.2 million units shipped, respectively.
Challenges and Future Outlook
The Indian smartphone market is currently facing various challenges, including fluctuating demand in the mass-market segment, slow migration from feature phones to smartphones, and the increasing adoption of second-hand smartphones. To address these challenges, brands are focusing on product innovation, ecosystem development, and personalized experiences to drive consistent year-round sales and establish sustainable business models beyond seasonal demand and deep discounts.
Despite these challenges, the market is expected to experience mid-single-digit growth in both the upcoming festive season and overall shipments this year. The continued adoption of 5G devices and the increasing emphasis on brand experience across products and channels are expected to be key drivers of this growth.
Focus on Brand Experience and Innovation
As the market matures, vendors are increasingly recognizing the importance of building strong brand experiences to foster long-term customer loyalty. This includes leveraging emerging technologies like generative AI to enhance device experiences, integrating ecosystems, and introducing innovative form factors to capture consumer interest. Additionally, delivering these brand experiences through retail stores is seen as crucial for building brand competitiveness in the evolving Indian smartphone market.
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