- vivo has achieved the top spot in the Indian smartphone market for the first time.
- Consumers favored mid- to high-end models, but demand for entry-level products slumped due to price increases.
- Apple expects demand for the iPhone 15 to surge, alongside emerging brands such as Motorola and Google.
In an unexpected development, vivo has taken the top spot in the Indian smartphone market for the first time, securing a 19% market share and shipping 9.1 million units in Q3 2024, data shows. canaris Report.
This impressive growth was driven by vivo’s aggressive strategy across both online and offline channels and new product launches at premium price points. Strong partnerships and attractive profit margins for retailers also helped propel the brand ahead of competitors in a market typically dominated by low-cost devices.
However, the overall Indian smartphone market has not been plain sailing, according to the report. Although the market showed positive growth of 9%, reaching a total of 47.1 million units, the early Christmas season did not bring the consumer rush that brands had hoped for. Rising food inflation and cautious city spending contributed to the slump in sales, even as early monsoon sales cleared stocks.
The report also noted changes in consumer behavior during the quarter. Replacement and upgrade buyers focused on mid- to high-end models, driven by attractive trade-in deals and easy financing options that made premium devices more affordable. However, demand for entry-level devices, which traditionally account for the bulk of the Indian market, slumped as rising prices caused many consumers to postpone purchases until after Diwali.
As a result, vendors are finding it difficult to expand into festival areas. Vendors stocked up on devices and built up inventory in anticipation of strong festival demand, but things didn’t go as planned. Currently, these brands with excess inventory must use offline channels that offer deep discounts and extend margins to retailers to move inventory.
Looking at market performance, Xiaomi, a familiar company in the Indian market, shipped 7.8 million units and managed to maintain its second place.
However, the market environment was not so favorable for Samsung, which fell to third place after being number one at the beginning of the year. Shipments were down 4% year-on-year to 7.5 million units, and Samsung’s premium products lacked the same enthusiasm as they did in early 2024, with momentum slowing noticeably.
On the other hand, OPPO and realme were in the top five. While Realme faced challenges in driving demand, Oppo shined as the vendor with the highest growth during the quarter.
Non-top brands experienced significant growth as well. For example, Apple experienced strong demand for the iPhone 15, especially in smaller cities. Other startups such as Motorola, Google, and Nothing also gained attention through their unique designs, clean software, and extensive distribution strategies.
Looking ahead, the report notes that the future of the smartphone market lies in affordable 5G. canaris He emphasized that ultra-low-end 5G devices priced below ₹10,000 ($119) will be crucial for growth in 2025. But these phones will need to offer more than just 5G connectivity, as consumers now expect better features even from lower-priced models.
The shift from 4G feature phones to smartphones is also expected to play an important role in driving demand, especially in rural areas. whole, canaris forecasts moderate growth in 2025 as the pandemic-driven replacement cycle ends and the affordable 5G segment is expected to lead the way.
Graph: Indian smartphone market performance in Q2 2024
Market growth for the quarter was just 1%
