Smartphone Shipments In India Dipped By 2% In June Quarter
According to Counterpoint's Monthly India Smartphone Tracker, 77% of total shipments were of 5G smartphones in the quarter.
India's smartphone shipments declined by 2% year-on-year in the June quarter due to heatwave and reduced demand, according to a report by the global research firm Counterpoint.
The report also revealed that Xiaomi regained the leading position in terms of volume share, while Samsung topped the market in terms of value.
According to Counterpoint's Monthly India Smartphone Tracker, 5G smartphones achieved their highest-ever share, accounting for 77% of total shipments.
Another key takeaway was that India's smartphone market hit its highest-ever second quarter value, driven by the ongoing trend of premiumisation.
"India's smartphone shipments fell 2% YoY in Q2 2024 (April-June)," it said.
The decline was influenced by heatwave, seasonal slump, and slower demand in the second quarter.
"In response, Original Equipment Manufacturers hosted sales events in Q2 to clear inventory, leading to a reduced sell-in and a period of degrowth," it said.
On the market's volume dynamics, Senior Research Analyst Shilpi Jain explained that heatwave conditions in various regions led to lower footfalls in offline channels and delayed smartphone purchases as consumers prioritised appliances like air-conditioners and refrigerators.
The decreased demand resulted in accumulation of inventory. Despite that, summer sales through online platforms, a bountiful harvest, and vigorous end-of-quarter promotions helped OEMs recover, leading to a more favourable conclusion to the quarter compared to its start.
"During the quarter, Xiaomi reclaimed the top spot with a 23% year-on-year growth in its shipments, driven by a streamlined and focused portfolio that spans from the entry-level to affordable premium segments," Counterpoint said.
Xiaomi reclaimed the top spot with an 18.9% shipment share, and Vivo followed closely with 18.8% share.
On value dynamics, Research Analyst Shubham Singh said, "In Q2 2024, India's smartphone market achieved its highest ever Q2 value, driven by the ongoing trend of premiumisation."
Consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes. This resulted in a 24% year-on-year growth in the ultra-premium segment—over Rs 45,000.
Samsung led the market in terms of value with a 25% share, followed by Vivo and Apple.
"Meanwhile, Apple ranked third in value terms. But it is expected to rebound in the next quarter, driven by the recent price cuts across the entire range of iPhones," Singh said.
(With Inputs From PTI)
