India smartphone shipments grow 11.5% in Q1, Vivo overtakes Samsung as top brand: IDC

DELHI: In the first quarter of 2024, vivo emerged as the top brand in India, replacing Samsung, with a market share of 16.2 per cent, an increase from 15.4 per cent in the consecutive period last year.

Samsung stood at the second position with a 15.6 per cent market share, marking a 13 per cent YoY decrease from the previous year. Xiaomi’s market share has rose to 12.8 per cent from the last year’s 12.6 per cent, according to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker report.

Vivo’s growth can be attributed to building its portfolio across price segments/channels and supporting offline partners, the report said.

Amongst the top 10 brands, Motorola registered the highest growth, led by affordable launches. Samsung, despite the new lineup, witnessed a decline in shipments, it said.

India’s smartphone market shipped 34 million smartphones in 1Q24, with 11.5 per cent growth YoY, making it the third consecutive quarter of growth in shipments, the report revealed.

“Several new launches across multiple price segments happened during the quarter, coupled with increased promotional activities, particularly around premium offerings. Brands continued their focus on microfinancing schemes to drive affordability. eTailers organised several sales events and offered discounts on models nearing their end-of-life (EOL), resulting in increased demand and lean inventory,” said Upasana Joshi, Senior Research Manager (client devices), IDC India.

Key highlights for 1Q24:

• Smartphone ASPs (average selling price) remained flat YoY and QoQ at US$263, ending the streak of strong ASP rise for the last several quarters.
• The entry level (sub-US$100) segment declined by 14% YoY to 15% share, down from 20% a year ago. Xiaomi continued to lead this space, followed by Poco (2nd) and itel (3rd).
• Shipments to the mass budget (US$100<US$200) segment grew by 22% YoY, reaching 48 per cent from 44 per cent a year ago. The top three brands were Vivo, Xiaomi and Samsung, making up 53 per cent share in this segment.
• The share of entry-premium (US$200<US$400) segment reached 23 per cent, up from 20 per cent growing by 25 per cent YoY. OPPO and realme gained a significant share, making up almost 30 per cent of this segment.
• The mid-premium segment (US$400<US$600) segment declined by 46 per cent in unit terms to a 3 per cent share, down from 6 per cent a year ago. OnePlus led with a 38 per cent share, followed by vivo and OPPO.
• The premium segment (US$600<US$800) held a 2 per cent share and declined by 21 per cent in unit terms. Key models were the iPhone 13, Galaxy S23FE/S23, iPhone 12 and OnePlus12. Apple’s share declined YoY to 45 per cent, while Samsung was a close second with a 44 per cent share, up from 16 per cent a year ago.
• The super-premium segment (US$800+) grew the highest with 44% growth, with its share up from 7 per cent to 9 per cent. The iPhone14/15/14 Plus/15 Plus together accounted for 64 per cent of shipments, followed by the Galaxy S24/S24 Ultra/S23/S24+ with 25 per cent share. Overall, Apple led the segment with a share of 69 per cent, followed by Samsung at 31 per cent.
• 23 million 5G smartphones were shipped in the quarter. The share of 5G smartphone shipments increased to 69 per cent, up from 46 per cent in 1Q23, while 5G smartphone ASPs dropped to US$337, a decline of 21% YoY in 1Q24. Within 5G, shipments of the mass budget (US$100<US200) segment grew three times to reach 46% share. Xiaomi’s Redmi 13C, vivo’s T2x, Samsung’s Galaxy A15, vivo’s Y28 and Apple’s iPhone14, were the highest shipped 5G models in 1Q24.

Shipments to online channels grew by 16 pc

Shipments to online channels grew by 16 per cent YoY, and its share increased to 51 per cent in 1Q24 compared to 49 per cent in 1Q23. Poco, vivo and Motorola registered more than 65 per cent YoY shipment growth in the online channel. Overall, vivo emerged as the top brand, the report said.

Apple, with an ASP of US$953, had a record first-quarter shipment, growing by 19% YoY. Price discounts, special deals on eTailer platforms, and attractive financing options led to this consistent growth for Apple beyond the festive season. iPhone 14/15 made up 56% of shipments for Apple.

“The first few months of the year have provided momentum for the smartphone market in India. However, the second half of the year will be crucial. IDC estimates a modest overall annual growth in the mid-single digits for 2024,” says Navkendar Singh, Associate Vice President, Devices Research, IDC.

“Challenges around attracting first-time smartphone users and mitigating the impact of the secondhand market continue to restrict market growth. Notably, the market’s concentration among the top brands is weakening, with the long tail of smaller brands and sub-brands gaining volume. The share of the top five brands has dropped to 65% from 69% a year ago,” Singh added.