India’s smartphone market has witnessed remarkable growth in recent years, and Q3 2024 has seen the country cement its position as the second-largest market globally by unit volume and the third-largest market by value. According to Counterpoint Research, India accounted for 15.5% of global smartphone shipments, trailing only China, which held a 22% share, and the United States, which came in third with 12%.

Growth Trends in India’s Smartphone Market

India’s smartphone shipments in Q3 2024 grew by 3% year-on-year (YoY), while the market value surged by an impressive 12%, marking a record-high quarterly growth. This performance was driven by a shift towards premium smartphones, with average selling price (ASP) increasing by 8% to US$ 294. The rise in ASP reflects a growing demand for higher-end devices as Indian consumers increasingly opt for premium models. This trend is expected to continue as consumers upgrade to higher-priced smartphones, bringing India closer to the global ASP average of US$ 349.

Premiumization and Market Shift

A key factor behind this growth is the premiumization trend, where consumers are shifting towards premium smartphones rather than entry-level or mid-range devices. This shift is evident not only in India but also globally, as nearly 30% of global smartphone sales in Q3 2024 occurred in the above-US$ 400 category. The growing demand for premium smartphones has contributed significantly to the increase in market value, with companies like Samsung and Apple leading the charge in India’s premium segment.

Samsung and Apple Dominate the Premium Segment

Samsung and Apple continue to dominate the premium segment of the Indian smartphone market. In Q3 2024, they collectively held a 44.6% share of the overall market value. Their dominance in the premium space is aligned with the global trend of higher smartphone prices and the increasing value-based growth in the market. The strong performance of these brands is a testament to the rising aspirations of Indian consumers, who are increasingly willing to spend more on smartphones that offer advanced features, better performance, and improved technology.

India’s Smartphone Market Potential

With a smartphone base of 690 million users within a population of 1.4 billion, India has substantial room for growth and market penetration. As Neil Shah, co-founder of Counterpoint Research, highlighted, India’s smartphone market has tremendous potential for further expansion, especially in rural areas where smartphone adoption is still on the rise. The rise in middle-class incomes, coupled with a growing young population, positions India as a key market for global smartphone manufacturers.

Despite the slowing growth in the overall global smartphone market, which saw a modest 2% growth in Q3 2024 with 307 million shipments, India’s smartphone market is on an upward trajectory. The global market is also seeing a shift towards premium devices, a trend that is reflected in India, where consumers are willing to pay a premium for high-quality, feature-rich smartphones.

Impact of the Festival Season

The early start to the festival season in India played a role in driving the 3% increase in smartphone shipments, as consumers looked to take advantage of discounts and promotional offers during this period. The festival season has traditionally been a significant driver of consumer demand, and in 2024, it continued to stimulate sales in the smartphone segment.

The Outlook for India’s Smartphone Market

India’s smartphone market is poised for further growth, with premiumization expected to be a key driver in the coming quarters. As consumers increasingly opt for smartphones with advanced features, global manufacturers are likely to focus more on India, offering a wider range of premium models to cater to this growing demand.

The country’s strong economic fundamentals, coupled with an expanding middle class and young, tech-savvy consumers, will likely continue to support the growth of India’s smartphone market. Companies that focus on innovative marketing strategies, provide value for money, and prioritize quality and performance will likely see continued success in this competitive market.

India's emergence as the second-largest smartphone market by volume and the third-largest by value reflects its growing importance in the global smartphone industry. As the market matures and consumers increasingly look for premium options, India’s smartphone market will continue to be an area of intense focus for global smartphone brands. With an expanding user base and rising consumer expectations, India’s smartphone sector is set to remain a key player in the global market.

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