India Smartphone Shipments Dip 2% in Q2 2024: Counterpoint

New Delhi, Jul 31 (PTI) India's smartphone shipments fell two per cent year-on-year in June quarter, hurt by the heatwave and slower demand, as per a report by global research firm Counterpoint that showed Xiaomi reclaimed top spot in volume share and Samsung led in value terms.

Notably, 5G smartphones captured their highest-ever share of 77 per cent in the overall shipments, according to Counterpoint's Monthly India Smartphone Tracker.

Another key takeaway was that India's smartphone market hit its highest ever Q2 value, driven by the ongoing trend of premiumisation.

"India's smartphone shipments fell 2 per cent YoY in Q2 2024 (April-June)," it said.

The decline was influenced by a heatwave, a seasonal slump, and slower demand from Q1 2024.

"In response, OEMs (Original Equipment Manufacturers) hosted sales events in Q2 to clear inventory, leading to a reduced sell-in and a period of degrowth," it said.

On the market's volume dynamics, Senior Research Analyst Shilpi Jain explained that 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.

This reduced demand led to 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.

"During the quarter, Xiaomi reclaimed the top spot with a 23 per cent YoY growth in its shipments, driven by a streamlined and focused portfolio that spans from the entry-level to affordable premium segments," Counterpoint said.

Xiaomi reclaimed the top spot with an 18.9 per cent shipment share, and Vivo followed closely with 18.8 per cent share.

On value dynamics, Research Analyst Shubham Singh said: "In Q2 2024, India's smartphone market achieved its highest ever Q2 value, driven by the ongoing trend of premiumisation."

Consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes.

This resulted in a 24 per cent YoY growth in the ultra-premium (over Rs 45,000) segment.

Samsung led the market in terms of value with a 25 per cent share, followed by vivo and Apple.

"Meanwhile, Apple ranked third in value terms. But it is expected to rebound in the next quarter, driven by the recent price cuts across the entire range of iPhones," Singh said.