Canalys: India's smartphone shipments reached 47.1 million units in the third quarter, vivo topped the list for the first time

The Zhitong Finance App learned that Canalys published an article stating that in the third quarter of 2024, the Indian smartphone market grew 9%, with shipments reaching 47.1 million units. In order to meet holiday demand, major manufacturers clean up inventory in advance through early monsoon promotions through online and offline channels. However, demand remained weak at the beginning of the holiday season due to rising food inflation and slowing urban spending on durable goods. With strong promotion through various channels, vivo topped the list for the first time, accounting for 19% of the market share and shipping volume of 9.1 million units. Thanks to its economical 5G product line, Xiaomi (01810) ranked second, with 7.8 million units shipped. Samsung, on the other hand, ranked third with 7.5 million units shipped. OPPO (excluding OnePlus) and Realme ranked fourth and fifth with shipments of 6.3 million units and 5.3 million units, respectively.

Sanyam Chaurasia, senior analyst at Canalys, said that vivo topped the list with the launch of new high-end equipment products and positive channel profits. Both Vivo and OPPO have boosted sales by expanding their online product portfolios, including the T3 and K12 series, beyond their traditional offline channels. Notably, the leading brands in the market are expanding their mid-to-high-end product portfolios to cope with inventory clean-up during holiday sales. Meanwhile, brands other than the top five also performed strongly during the quarter. With the iPhone 15, Apple is driving a large number of shipments, especially before it launches new products, and demand in small cities is even stronger. Other brands, such as Motorola, Google, and Nothing, continue to drive sales growth with strong driving factors such as unique design languages, simple user interfaces, and channel expansion strategies.

Chaurasia continued: “Most vendors are actively shipping to meet holiday demand, but inventory will increase as demand falls short of expectations. In the third quarter, due to the expansion of mid-range and high-end products, competitive trade-in policies and convenient financing options, replacement and upgrade buyers preferred to buy more expensive models. However, entry-level demand was weak, as rising prices forced consumers to postpone purchases until after Diwali. Brands rely on offline pre-Diwali shipments, and they will be cautious about year-end inventory levels. In order to effectively manage inventory in the second half of 2024, significant discounts and increased channel profits will be critical. Notably, as governments, regulators, and brands prioritize strong cross-channel operations, the gap between online and offline channels has narrowed in terms of actively delivering products.”

Chaurasia concluded: “In addition to the post-pandemic replacement cycle, the promotion of ultra-low-end 5G products will be critical to the organic growth of the market in 2025. Despite some raw material cost challenges, the Indian smartphone market will launch a number of 5G devices priced under Rs 10,000 next year, driven by supply chains and OEMs. Brands need to ensure that these devices don't just have 5G capabilities, as consumers and channels are unwilling to compromise on specifications and are willing to pay more for higher price enhancements. Additionally, lower-tier financing options give consumers more control over their budgets.”

Canalys anticipates that as the pandemic-driven replacement cycle ends in the first half of next year, moderate single-digit growth will be achieved in 2025, and the ultra-low-end 5G segment will remain the main natural market driver. Although rural demand has risen due to improved monsoon conditions in recent years, the shift from feature phones to smartphones is still slow. This shift has been hampered by competition for 4G-enabled phones and the growing unorganized second-hand market.