India's Smartphone Market Faces Intense Competition in Affordable 5G Segment
The Indian smartphone market experienced robust growth in the first quarter (Q1) of 2024, with a 10 percent year-on-year increase and 5G devices capturing a significant 70 percent market share. Analysts predict fierce competition in the affordable 5G segment this year and beyond, driven by growing demand for 5G and AI-powered smartphones.
According to CyberMedia Research (CMR), 5G smartphone shipments marked a notable 91 percent year-on-year growth, with devices priced between Rs 10,000 and Rs 15,000 growing by over 400 percent year-on-year.
"Brands that capitalize on these trends affordable 5G, powerful on-device AI, and seamless cross-device experiences—will be well-positioned to win in this growing but hypercompetitive market", stated Bhaskar Negi, Analyst-Industry Intelligence Group, CMR.
The Indian smartphone market is estimated to grow by 7-8 percent in 2024, spurred by strong demand for 5G and AI smartphones. In Q1, Samsung led the 5G smartphone market with a 22 percent share, while overall mobile market shipments saw a 20 percent year-on-year increase.
"India's smartphone market witnessed a significant surge in 5G adoption and a clear ongoing push towards premiumization", said Menka Kumari, Analyst-Industry Intelligence Group, CMR. "The onset of AI phones further fueled the premiumization wave. The super-premium smartphone category (over Rs 50,000) experienced notable 47 percent year-on-year growth, reflecting a rising preference among consumers for high-end devices".
The value-for-money smartphone segment (priced between Rs 7,000 and Rs 25,000) held the largest market share at 65 percent, while the affordable smartphone segment (below Rs 7,000) experienced 16 percent year-on-year growth.
Meanwhile, the premium smartphone segment (priced above Rs 25,000) recorded a 71 percent growth, driven by easy payment options and premium features such as AI capabilities.
