India’s smartphone market witnessed a remarkable surge in shipments during the first quarter (Q1) of the year, with an unprecedented 8 per cent increase in volume and an impressive 18 per cent rise in value compared to the same period last year, as revealed in a recent report.
The dominance of 5G smartphones notably peaked during this period, accounting for a staggering 71 per cent share in volume, according to findings from Counterpoint Research.
A significant milestone was achieved in the premium segment, which attained its highest-ever 20 per cent volume share and a commanding 51 per cent share of the overall market value.
Shilpi Jain, a senior research analyst, attributed this buoyant growth to the escalating trend of premiumization in India's smartphone landscape. Jain noted, “India’s smartphone market reached its highest-ever Q1 value. The growth was driven by the strengthening trend of premiumization.”
The report also highlighted a notable shift in consumer behavior, with more than one-third of mid-tier users displaying a willingness to transition to the premium segment. Factors fueling this transition include accessible financing options, lucrative trade-in values, and bundled offers, coupled with a growing demand for cutting-edge features such as AI capabilities, gaming enhancements, and superior imaging technology.
In a significant milestone, vivo emerged as the volume leader in the market for the first time in a single quarter, signaling its growing prominence in the Indian smartphone landscape.
Meanwhile, Samsung secured its position as the market leader in terms of value, capturing over a quarter of the total market value. Notably, Samsung's average selling price (ASP) reached an all-time high in the Indian market during this period.
Looking ahead, the report anticipates continued growth in India’s smartphone market, albeit in single digits, throughout 2024. This growth trajectory is expected to be propelled by the continued trend of premiumization, accelerated adoption of 5G technology, and a surge in post-COVID upgrade activities.
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