India smartphone shipments down 2% in Q2; Xiaomi reclaims lead with 23% share

India’s smartphone shipments fell 2% YoY in Q2 2024 (April-June) of the calendar year 2024 (CY2024), with Chinese smartphone major Xiaomi emerging as the biggest player in terms of volume share. The overall decline in shipments has been attributed to heatwave across India that hit businesses, a seasonal slump, and slower demand from Q1 2024, the market intelligence firm Counterpoint Research says in its latest report.

In Q2 2024, Xiaomi reclaimed the top spot with a 23% YoY growth in shipments, driven by a streamlined and focused portfolio spanning the entry-level to affordable premium segments. The company shipments surged 18.9% in Q2 2024 from 15% in the year-ago period. In terms of value share, Xiaomi secured a 10.8% share, up from 8.1% in the year-ago period. "The company employed a strategy to push flagship handsets, improve marketing and expand distribution channels,” says the report.

To beat the sale blues, regions in other emerging markets (OEMs) hosted sales events in the said quarter to clear inventory, leading to a reduced sell-in and a period of degrowth, the report adds.

Senior research analyst Shilpi Jain says heatwave conditions in various regions led to lower footfalls in offline channels and delayed smartphone purchases as consumers prioritised appliances like air conditioners and refrigerators, which reduced demand and caused an inventory build-up. "However, summer sales at online channels, good harvest and aggressive promotions towards the end of the quarter provided relief to OEMs, helping close the quarter on a better note than at the beginning," it adds.

In Q2 2024, India’s smartphone market achieved its highest ever Q2 value, driven by the ongoing premiumisation trend, says research analyst Shubham Singh. "Consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes. This resulted in a 24% YoY growth in the ultra-premium (>INR 45,000) segment."

Samsung led in value terms for the second consecutive quarter, capturing over one-fourth of the market. "Its new Fold 6 series is expected to sustain this leadership. With the brand focusing on value over volume, its ultra-premium segment (>INR 45,000) grew by 99% YoY in Q2 2024. vivo took the second spot, driven by its higher-priced models like the V30 series with enhanced cameras."

Samsung's market share in volume dipped to 18.1% from 18.4% in the year-ago period. In value, Samsung's share was at the top at 24.5%, up from 23.2% in the year-ago period. The U.S.-based tech giant Apple, which ranked third in value terms, saw its market share in value surging marginally to 16.3% from 16.2% in the second quarter of the last fiscal year. Experts say Apple could see a rebound in sales in the next quarter, driven by the recent price cuts across the entire range of iPhones. vivo's market share in value was 16.8%, up from 16% in the year-ago period. Oppo's share in value stood at 10.1%, up from 9.6% in the year-ago period.