Vivo Takes the Lead in the Indian Smartphone Market for 2024, Surpassing Samsung!

In an unprecedented shift, Vivo has eclipsed Samsung to become the frontrunner in the Indian smartphone sector for 2024, as disclosed by Counterpoint Research. Vivo secured 19% of the market's total shipments, marking its ascendancy to the top spot. This development is followed by Xiaomi's impressive 17% of total shipments, positioning it just behind Vivo.

Revenue and Market Dynamics in 2024

2024 witnessed a notable growth in the smartphone sector, with the total wholesale revenue surging by 9% year-on-year, setting a new record, as reported by Counterpoint's Monthly India Smartphone Tracker. The year kicked off with an upbeat trend, buoyed by early growth, consistent inventory levels, and a positive market forecast.

Nonetheless, the latter part of the year saw a deceleration in momentum, attributed to diminishing consumer demand and macroeconomic challenges. Despite these hurdles, the trend towards higher-priced smartphones persisted, propelling the market to achieve its highest-ever revenue figures.

Shilpi Jain, a Senior Research Analyst, provided insights into the market's condition, indicating a mature phase where stability in volumes is influenced by a decrease in new user additions. "India's smartphone market is showing signs of maturity, with stable volumes affected by low entry of new users into the ecosystem. Replacement cycles are increasing as entry- and mid-range devices continue to improve each year.

At the same time, there is a shift toward higher-priced devices, with shipments of premium segment devices (>INR 30,000) growing by double-digit percentages, driving a 9% YoY growth in wholesale value - the highest ever recorded," Jain remarked. Furthermore, Jain highlighted the growing consumer inclination towards premium smartphones, facilitated by trade-in programs and flexible financing options, despite the marginal overall shipment growth due to inflationary constraints.

Looking ahead, expectations for 2025 include a continuation of single-digit percentage growth in market volumes and another record-high in value, driven predominantly by the premiumization trend. This shift towards higher-end devices is underscored by a significant 16% year-on-year growth for Vivo, which has been bolstered by its extensive offline network and the support from its sub-brand iQOO.

On the other hand, Xiaomi experienced a resurgence, securing a 6% increase in shipments year-on-year after previous declines, while Samsung saw its dominance diminish, slipping to third place due to its reduced focus on lower-priced market segments.

Despite challenges in the first half of 2023, OPPO managed to claim the fourth position, witnessing a 10% decline in year-on-year growth due to product and channel issues. Nonetheless, the brand saw a turnaround with a refreshed product lineup, including the K and A series. 2024 also marked a successful year for Apple, which secured a spot among the top five in the fourth quarter. The launch of the iPhone 15 played a crucial role, making it the highest-shipped device of the quarter and contributing to Apple's record shipments and the highest market value share for the year.

In conclusion, the Indian smartphone market has experienced a transformative year in 2024, with Vivo leading the charge and premium smartphones gaining traction among consumers. Despite various challenges, the sector's resilience and the strategic shifts by major brands underscore a dynamic landscape poised for further growth and innovation.

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