Vivo tops Indian smartphone market in Q1; Apple dominates premium segment

Chinese smartphone manufacturer Vivo emerged as the leading smartphone brand in India during the January-March quarter of 2024, according to a report released by market research firm Counterpoint Research on Thursday.
 

Vivo surpassed Korean brand Samsung, which slipped to third place despite an increasing trend towards premiumisation, the report said.
 

However, Samsung maintained its leadership in terms of volume share, holding a quarter of the market share by value due to its higher-priced phones compared to Vivo and Xiaomi. With an average selling price of $425, Samsung reached its highest ever ASP, primarily driven by its dominance in the segment above Rs 20,000.

Vivo secured a market share by volume of 19 per cent as against 17.5 per cent year-ago, driven by its leadership in 5G technology. Xiaomi, another Chinese firm, followed in second place with an 18.8 per cent share, up by three percentage points from the year-ago period. 

Samsung trailed behind with 17.5 per cent, down from 20.3 per cent from the same time last year, according to a report by Counterpoint Research released on May 9.

Apple also experienced a record quarter in India in terms of value, leading the premium segment in both value and volume terms, fueled by the latest iPhone 15 series, particularly in offline channels.

The increased average selling price (ASP) reflects a growing trend of purchasing higher-priced phones, known as premiumisation. 

The report highlighted that major original equipment manufacturers (OEMs) are diversifying their channel strategies, focusing on both online and offline sales channels.

Meanwhile, Xiaomi witnessed a 28 per cent year-on-year growth in shipments, attributed to a more focused product lineup and an active offline channel strategy. Its share of the value market grew by 4 percentage points to 18 per cent in the first quarter of CY24.

Oppo, another Chinese manufacturer, secured the fourth position with a 10.1 per cent volume share, while Realme garnered 9.9 per cent, marking an 18 per cent increase from the previous year.

The brand Nothing experienced the fastest growth at 144 per cent, driven by its new mid-segment model Nothing (2a). Motorola and Transsion also saw significant increases in shipments by 58 per cent and 20 per cent, respectively, compared to the same quarter of the previous year, the report highlighted.

India's smartphone shipments in the January-March period recorded an 8 per cent year-on-year growth in volume and an 18 per cent increase in value. This growth was primarily due to healthy inventory levels and a low base in Q1 2023.

Looking ahead, the market tracker anticipates single-digit growth in India's smartphone market in 2024, driven by factors such as increased premiumisation, adoption of 5G technology, and post-Covid upgrades, the report said.