India Becomes Second Largest Smartphone Market by Unit Volume in Q3 2024

India’s smartphone market has become the second largest globally by unit volume and third by value in Q3 2024, according to Counterpoint Research. In this period, India accounted for 15.5% of global smartphone shipments, trailing China’s 22% but surpassing the US, which held a 12% share. By value, India’s market share slightly rose to 12.3%, from 12.1% a year earlier.

While China led the value segment with 31% and the US followed with 19%, the Indian market is poised for more growth, with 690 million active smartphone users in a population of 1.4 billion. Growth was driven by early festive sales, a 3% year-on-year rise in shipments, and a notable 12% increase in market value. The trend toward premium devices saw the average selling price (ASP) climb by 8% to US$ 294.

Trend Toward Premium Devices

India’s smartphone ASP reached a new high, driven by an increase in premium segment sales, especially by brands like Samsung and Apple, which together held a 44.6% share by value. With a global ASP at US$ 349, India’s market is catching up. Despite the global smartphone market growing at only 2% in Q3 2024, India’s push toward premiumization indicates a significant shift in consumer behavior.

Used Smartphone Market Growth

With rising ASPs, the used smartphone market is booming. As IDC reports, India’s used phone market is projected to grow by 9.6% in 2024, with 20 million devices traded. In contrast, new phone shipments are expected to increase by just 5.5%. The used market, driven by affordability, is an attractive option for those wanting to upgrade to 5G without high costs.

Two-thirds of India’s 650 million smartphone users remain on 4G, and the lack of budget-friendly 5G models under Rs 10,000 ($125) has limited mass adoption. Apple and Xiaomi dominate the used segment, supported by demand for older models like iPhone 11 and 12. Startups like Cashify and Yaantra have structured the previously fragmented market, offering quality checks and warranties. IDC predicts this segment will continue growing at an 8% CAGR, reaching 26.5 million units by 2028.

Challenges in New Market Growth

New smartphone shipments have stagnated since 2021 due to factors like rising ASPs, longer replacement cycles, and income stress among consumers. The average device replacement time has extended from two to nearly three years, impacting overall new sales. Nevertheless, the booming used smartphone market presents opportunities for affordable quality upgrades.

Here’s a concise table with the key points