Surat rings loud in ultra-premium smartphone surge beyond metros

If you assumed that ultra-premium smartphones — priced at Rs 45,000 and above — were largely confined to India’s big metros and Tier-I cities, think again. Surat, best known for its diamond-processing and textile industries, may be classified as a Tier-II city, but it has surged to become the fifth-largest market for these high-end devices. 

This Gujarat city accounted for 2.4 per cent share of the ultra-premium smartphones market in Octo­ber 2024, according to fresh data from Counterpoint Research, thus not only dominating the Tier-II segment but also surpassing four of the eight leading Tier-I cities, including Kolkata (1.3 per cent), Hyderabad and Ahmedabad (1.6 per cent each), and even Chennai (1.7 per cent). 

The data underscores how major smartphone brands have successfully expanded their reach, tapping into aspirational demand in smaller cities. As Indian consumers embrace premium devices, supported by increasingly attractive EMI schemes, the share of the top 30 cities in ultra-premium smartphone sales declined from 40 per cent in September 2024 to 37 per cent in October. 

More broadly, India’s Tier-I cities —including Mumbai, Delhi-NCR, Bengaluru, Pune, Chennai, Ahmedabad, Hyderabad, and Kolkata — remain the primary market for these phones but saw their collective share of this segment fall from 31 per cent in October 2023 to 29 per cent a year later. Meanwhile, Tier-II and smaller cities now command a dominant 71 per cent share in sales volume. 

Within the Tier-II segment, Surat leads the pack, followed by Jaipur (0.9 per cent), with Visakhapatnam and Nagpur tied for third place at 0.6 per cent each. 

Ultra-premium models span offerings from Apple Inc, Samsung’s Galaxy S23 and S24, and flagship devices from OnePlus, Vivo, Google, and Xiaomi, with prices ranging from Rs 45,000 to upwards of Rs 150,000. The broader trend of market premiumisation is evident, with the segment’s share in total smartphone sales climbing from 10 per cent in May 2024 to 18 per cent in October.  Mumbai remains the largest mar­ket, accounting for 8.1 per cent of ultra-premium phone sales in October, followed by Delhi-NCR (7.4 per cent) and Bengaluru (4.2 per cent). 

“The numbers indicate that premium smartphones are increasingly being consumed beyond metros and Tier-I cities, largely driven by Apple’s role in creating aspirational demand in smaller cities,” said Tarun Pathak, research director at Counterpoint. 

Pathak also highlighted the role of e-commerce platforms and financing schemes in driving sales. “The availability of EMI options ensures that consumers don’t need to save large sums for upfront payments, providing greater flexibility in budgeting,” he added.