Smartphone shipments in India fall for the first time in five quarters: IDC

India’s smartphone shipments dropped by 3% to 36 million units in the December quarter of 2024, ending five consecutive quarters of growth, according to International Data Corporation’s (IDC) latest report published Monday. However, annual shipments grew by 4% YoY to 151 million in 2024 on the back of a strong first half. 

The IDC report mentions a growth of 7% in the first half of the year followed by a slower growth of 2% in the second half. This suggests a gradual cooling of the market leading to the decline in Q4 24. Rising inflation, consumers holding on their phones longer and buying refurbished devices are some trends impacting growth. 

Steady demand for mid and high-end smartphones, especially iPhone was the key driver for growth during the year.  According to IDC, the entry-premium segment ($200-400) grew at 35.3% YoY, capturing 28% of the market, up from 21% in 2023.  The premium segment ($600-800) also grew 34.9%, with its market share rising from 3% to 4%. 

 The average selling price (ASP) of smartphones also reached a record high of $259. 

Chinese brand Vivo led the India market with over 18% quarterly shipments in Q4 24 and also topped annual shipments in CY 24 with 16.6% share. IDC analysts attributed Vivo’s success to its omnichannel presence, diverse product portfolio across multiple price points, and channel support. Samsung regained the second place with over 12% shipments, while Oppo dropped to third with shipments close to 12%. 

Apple reached a new milestone in India in Q4 24 by becoming the fifth leading smartphone brand for the first time in a quarter with a market share of 10%. In terms of annual shipments, Apple’s share rose to 8.2% on the back of a record 12 million iPhone units. 

Both offline and online channels grew at 4% YoY with a market share of 51% and 49% respectively. The iPhone 15 was the most shipped smartphone online.

While demand for high-end phones is growing, India still has a large user base of feature phones. According to IDC, 54 million feature phones were shipped in 2024 at 11% YoY decline. IDC analysts expect the affordable segment to drive growth in 2025 as many of the feature phone users will look to upgrade to smartphones. 

“With a low single-digit growth in 2024, growth in 2025 hinges on a stronger performance in the mass segment ($100-200) and more offerings in the entry-premium segment (US$200-400) for upgraders,” said Navkendar Singh, associate vice president of Devices Research at IDC India.

Singh believes that generative AI features and use cases will be the difference maker, leading brands to offer them beyond flagship high-end models. Singh further added that “weakening rupee could impact ASPs, potentially restricting annual growth to below 5% in 2025.”