In Short:
Apple has expanded its revenue lead over Samsung in India, despite selling fewer phones. In the first half of 2024, Apple shipped 4.8 million iPhones for $4.56 billion, while Samsung shipped 9.8 million units but earned only $3.43 billion. Apple’s average selling prices are significantly higher, and it dominates the premium segments, causing Samsung’s revenue to decline.
New Delhi: Apple has strengthened its revenue lead in the mobile phone market in India over its global competitor Samsung. This achievement comes despite Apple shipping less than half the number of devices compared to the South Korean giant. The shift is largely attributed to record-high average selling prices (ASPs) and a vigorous expansion strategy, as reported by a research firm.
According to data exclusively provided to ET by market tracker IDC, in the first half of 2024, Apple shipped 4.8 million units, generating revenue of $4.56 billion. In contrast, Samsung saw shipping numbers nearly double at 9.8 million units, but with a revenue of $3.43 billion, resulting in a revenue gap of $1.13 billion.
Comparative Analysis of Revenue Trends
This marks a significant change from 2023, when the revenue gap stood at over $362 million, with Samsung losing its position as the leader in mobile phone value share to Apple for the first time. That year, Apple reported total revenue exceeding $8.69 billion.
With a total shipment of 9.2 million units in 2023, Apple surpassed Samsung, which achieved a revenue of $8.33 billion. As noted by Navkender Singh, associate vice-president at IDC, “Samsung’s drop can be attributed to a 15% year-on-year fall in shipments during April-June, along with a significant decline in ASP—from $380 last quarter to $313 in Q2 of 2024.” He further mentioned that Samsung’s newly launched Galaxy S24 struggled to maintain performance in the super-premium segment priced at $700 and above.
While Samsung did not respond to ET’s inquiries, company officials referenced alternate research indicating that the South Korean firm continues to maintain or expand its value share in the Indian market.
Market Share Insights
IDC reported Apple’s value share at 25.9% for January-June, up from 23% in all of 2023, contrasted with Samsung’s 19.4% share, which was down from 22% in the previous year. Meanwhile, Counterpoint Research indicated that Samsung held a 24.5% value share in the same period, while Apple was at 18%.
Looking ahead, analysts anticipate that by the end of the calendar year, Apple will achieve around 12.5 million shipments, a rise from 9.2 million in 2023. On the other hand, Samsung’s shipments are projected to decrease to approximately 20 million units, down from 24.7 million.
Performance Overview
Analysts suggest that Apple’s revenue is expected to maintain its upward trajectory, with the average selling prices expected to remain significantly higher than those of Samsung, whose performance will likely depend on festive demand.
For the fiscal year 2023, Samsung India reported revenue of Rs 98,924 crore, predominantly driven by mobile phone sales contributing Rs 70,292 crore, according to data from the Registrar of Companies. In contrast, Apple India recorded revenue of Rs 49,321 crore, with 94.6% stemming from product sales focused on iPhones.
Samsung, which led smartphone sales by volume in 2023, has faced challenges in recent quarters, particularly in lower-priced segments, due to rising competition from Chinese brands such as Xiaomi and Vivo, which are enhancing their budget offerings with 5G support.
Additionally, Samsung is encountering pressure in the premium segments, resulting from Apple’s aggressive marketing and the expansion of local manufacturing in India. In the June quarter, Apple dominated both the $600-800 and $800-plus premium segments, capturing 61% and 83% share of shipments, respectively, compared to Samsung’s 21% and 16% share as reported by IDC.
Furthermore, Samsung’s revenue has risen by 53.6% over the past five years, accompanied by an increase in ASPs from $176 in 2019 to $338 in 2023. However, shipment volumes have declined by 20% during the same period. Conversely, Apple’s iPhone revenue has surged more than sevenfold, with volumes increasing over six times. As a result, Apple now accounts for more than a quarter of the industry’s revenue, while Samsung‘s share has fallen to 19.4% as of the end of June, according to IDC.
