Indians Increasingly Opt for Premium Smartphones

By siliconindia  |  Tuesday, 13 August 2024, 16:57 IST

Indians Increasingly Opt for Premium Smartphones
In a notable shift, Indian consumers are increasingly favoring premium smartphones, driven by advancements in technology such as 5G and a steady rise in purchasing power. Data from the International Data Corporation (IDC) reveals a robust performance in the smartphone market, reflecting this trend.
According to IDC’s Worldwide Quarterly Mobile Phone Tracker, approximately 69 million smartphones were shipped in India during the first half of 2024, marking a 7.2% increase compared to the previous year. In the second quarter alone, shipments reached 35 million units, showing a growth of 3.2% from the same period last year. Despite this upward trajectory, the IDC reports that consumer demand remains somewhat muted, and rising device costs are impeding a swift recovery in shipments.
The average selling price of smartphones saw a modest rise of 2.8% from April to June 2024; however, it experienced a decline of 5.6% from the previous quarter, settling at USD 248. Upasana Joshi, Senior Research Manager at IDC India, attributed part of the quarter's dynamics to old inventory clearance and the introduction of new models, particularly in the mid-premium and premium segments. These new launches, primarily by Chinese vendors, were timed to capitalize on the monsoon sales in July and August.
The market for entry-level smartphones, priced under USD 100, experienced a significant decline, falling 36% year-on-year and shrinking to a 14% share from 22% the previous year. Conversely, the segment for budget smartphones priced between USD 100 and USD 200 saw an 8% increase in shipments, with its market share rising to 44% from 42%. Xiaomi, Realme, and Vivo were the top three brands in this segment, collectively accounting for 60% of the sales.
Smartphones priced between USD 200 and USD 400 gained considerable traction, with their market share increasing to 30% from 22%, reflecting the highest growth rate of 42% year-on-year. Brands such as OPPO, Vivo, and Samsung made significant gains, commanding almost 60% of this segment. In contrast, smartphones priced between USD 400 and USD 600 saw a decline of 25%, capturing just 4% of the market share, down from 5% a year ago. Vivo led this segment with a 25% share, followed by OnePlus and OPPO.
The premium segment, with smartphones priced between USD 600 and USD 800, saw its share decrease to 2% and experienced a 37% decline. Key models in this range included the iPhone 13, Galaxy S23 FE, iPhone 12, and OnePlus 12. Apple's share in this category grew to 61%, while Samsung's share increased to 24%.
In the super-premium segment, which includes devices priced over USD 800, shipments grew by 22%, with the market share rising from 6% to 7%. The iPhone 15, iPhone 15 Plus, iPhone 14, and iPhone 14 Plus collectively accounted for 77% of the shipments, followed by the Galaxy S24 and S24 Ultra with an 11% share.
A significant highlight from the April-June quarter was the surge in 5G smartphone shipments. With 27 million units shipped, 5G devices now account for 77% of the total smartphone shipments, a notable increase from 49% in the same quarter of 2023. This growth is largely attributed to the increasing affordability of 5G technology.
IDC also noted shifts in distribution channels. Shipments to online channels grew by 8% year-on-year, raising their share to 50% in April-June 2024, compared to 47% the previous year. In contrast, offline channel shipments saw a 2% decline due to severe heatwave conditions affecting major parts of India.
Navkendar Singh, Associate Vice President of Devices Research at IDC, commented on the premiumization trend: “The drive towards higher-end smartphones, led by brands like Apple and Samsung, coupled with rising device costs, is pushing China-based brands to venture beyond the mass segment. We anticipate healthy growth in the entry-premium segment (USD 200 to USD 400), while the entry-level segment (under USD 100) will continue to face challenges this year despite efforts to introduce affordable 5G devices”.
Singh also highlighted the expected marketing push around GenAI smartphones, noting that promotional activities for these models are likely to become more pronounced.
As the Indian smartphone market continues to evolve, driven by technological advancements and shifting consumer preferences, the landscape of mobile devices is set to undergo significant changes, promising enhanced experiences and new opportunities for both consumers and manufacturers alike.

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