New Delhi: Driven by rural demand ahead of the festive season, the Indian smartphone market grew 9 percent in the July-September period, shipping 47.1 million units, according to a new report.
Vendors cleared inventory through early monsoon sales across online and offline channels to gear up for the festive season, according to market research firm Canalys.
According to senior analyst Sanyam Chaurasia, top brands in the market are expanding their portfolio in the mid-high range, in anticipation of clearing inventory during festive sales.
“Meanwhile, brands outside the top five experienced another strong quarter. Apple drove significant volumes with the iPhone 15, with stronger demand coming from smaller cities, ahead of its latest launch,” he mentioned.
Other brands, such as Motorola, Google, and Nothing, continue to drive volumes owing to strong pull factors from the unique design language, clean user interface, and channel expansion strategies.
Vivo claimed the pole position for the first time amid an aggressive push across channels, capturing a 19 percent market share and shipping 9.1 million units. Xiaomi came second, shipping 7.8 million units, driven by its budget 5G lineup, while Samsung came in third with 7.5 million units.
OPPO (excluding OnePlus) and Realme completed the top five with 6.3 million and 5.3 million units shipped, respectively, according to the report.
According to the report, both replacement and upgrade buyers leaned toward higher-priced models due to expanded mid-to-high-end offerings, competitive trade-in deals, and accessible financing options.
“However, entry-level demand was weak as rising prices forced consumers to delay purchases until after Diwali. Brands are reliant on offline sales before the Diwali season and will remain cautious about year-end inventory levels,” said Chaurasia.
The report further stated that heavy discounting and extended channel margins will be essential to manage stock effectively in H2 2024.
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