Indians Prefer Premium Smartphones: Apple and Samsung Lead the Way
Indians are increasingly buying premium smartphones due to new technology like 5G and rising purchasing power. In the first half of 2024, 69 million smartphones were shipped in India, with a 7.2% yearly growth, according to the International Data Corporation (IDC).
Shipment Growth
In the second quarter of 2024, 35 million smartphones were shipped, showing a 3.2% growth. Despite this, consumer demand remains muted, and rising device costs are slowing down shipment recovery.
Price Trends
The average selling price of smartphones grew by 2.8% during April-June but declined by 5.6% from the January-March quarter to USD 248.
Market Segments
Entry-level smartphones (sub-USD 100) saw a 36% decline, while budget smartphones (USD 100-200) grew by 8%. The mid-premium segment (USD 200-400) saw the highest growth at 42%. The premium segment (USD 600-800) declined by 37%, but the super-premium segment (over USD 800) grew by 22%.
Brand Performance
Apple and Samsung lead the premium market, with Apple’s share increasing to 61% and Samsung’s to 24%. In the super-premium segment, iPhone models accounted for 77% of shipments.
5G and Sales Channels
Among the 27 million 5G smartphones shipped in April-June, 77% were 5G-enabled, up from 49% last year. Online sales grew by 8%, while offline sales declined by 2% due to heatwaves.
Future Trends
Navkendar Singh, Associate Vice President at IDC, noted that the premiumization trend is motivating China-based brands to expand beyond the mass segment. The entry-premium segment (USD 200-400) is expected to grow, while the entry-level segment (sub-USD 100) will face challenges.
Doubts Revealed
Premium Smartphones -: Premium smartphones are high-end mobile phones with advanced features, better quality, and higher prices. Examples include the latest models from Apple and Samsung.
5G -: 5G is the fifth generation of mobile network technology. It offers faster internet speeds and more reliable connections than the previous 4G technology.
Purchasing Power -: Purchasing power means how much money people have to buy things. If purchasing power is rising, it means people have more money to spend.
Shipped -: Shipped means the number of smartphones that were sent to stores and customers. It shows how many phones were sold or delivered.
Yearly Growth -: Yearly growth means how much something has increased or decreased compared to the same time last year. In this case, it refers to the increase in smartphone shipments.
Average Selling Price -: Average selling price is the average amount of money people pay for smartphones. If it grows, it means people are spending more on each phone.
April-June Quarter -: The April-June quarter is a three-month period from April to June. Businesses often report their performance in these quarters.
Apple -: Apple is a famous company that makes iPhones, iPads, and other electronic devices. It is known for its high-quality and expensive products.
Samsung -: Samsung is a well-known company from South Korea that makes smartphones, TVs, and other electronics. It is one of the top brands in the world.
Budget Smartphones -: Budget smartphones are cheaper mobile phones with basic features. They are more affordable for people who don’t want to spend a lot of money.
Online Sales -: Online sales are purchases made through the internet on websites like Amazon or Flipkart. People buy things online instead of going to a physical store.
Offline Sales -: Offline sales are purchases made in physical stores, like a shop in your neighborhood. People go to the store to buy things directly.
Heatwaves -: Heatwaves are periods of very hot weather. They can make it uncomfortable to go outside, which might be why fewer people went to stores to buy smartphones.
