In Short:
The arrival of affordable data has boosted the smartphone industry in India, with a shift towards super-premium devices like the iPhone and Samsung’s Galaxy S series. In Q1 2024, the super-premium segment ($800+) saw a 44% growth in shipments, with Apple and Samsung dominating the market. Despite an overall growth in smartphone shipments, the premium and mid-premium segments experienced declines as users either opt for entry-premium devices or high-end flagships. The shift towards super-premium devices can also be attributed to the increasing disposable income and changing consumer preferences. Additionally, the recent election impact on phone bills has also led to a surge in demand for high-end smartphones, as consumers seek to make the most of their data plans and take advantage of advanced features and services. With the smartphone market in India continually evolving, it will be interesting to see how manufacturers respond to these shifts in consumer behavior.
Indians Spending More on Super Premium Smartphones in 2024
The smartphone industry in India has experienced a significant shift towards super-premium devices, fueled by the affordability of data. Smartphones are no longer just communication tools; they serve as platforms for various activities like content creation, consumption, entertainment, and more, reflecting one’s social status. Owning a top-tier smartphone like an iPhone or a flagship Samsung device is often associated with high net-worth individuals.
Key Data Insights
According to the International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, the super-premium device segment (priced at $800+ or approximately Rs 67,000) witnessed a 44% growth in shipments in Q1 2024, the highest among all price categories. The market share of this segment increased from 7% to 9%.
Apple’s iPhone models accounted for 64% of shipments in the super-premium segment, dominating the market. Samsung followed closely with a 25% share, with its Galaxy S series devices. Together, these two brands controlled 89% of the market share, leaving only 11% for other players like Xiaomi and OPPO.
Overall, 34 million smartphones were shipped in India during Q1 2024, marking an 11% year-over-year growth. Interestingly, while the super-premium segment saw a surge in shipments, the premium ($600-$800) and mid-premium ($400-$600) segments experienced a decline.
Market Trends
The premium segment witnessed a 21% decrease in shipments, reducing its share to 2%. Similarly, the mid-premium segment saw a 46% decline, leading to a drop in its share from 6% to 3%. This trend suggests that users are either opting for more affordable entry-premium devices or investing in super-premium flagship smartphones.
