India’s Smartphone Landscape: Evolution in a Competitive Market
The Indian mobile phone market witnessed steady growth in 2024, driven by increased smartphone adoption, aggressive pricing strategies, and evolving consumer preferences. Despite fluctuations in demand and economic uncertainties, India remained a key battleground for major global and domestic smartphone brands, with notable shifts in market leadership and competitive dynamics.
Market Overview
According to International Data Corporation’s (IDC) Worldwide Quarterly Mobile Phone Tracker, India’s smartphone market grew by 4% year-over-year (YoY), with total shipments reaching 151 million units. The first half of the year saw robust growth of 7%, compensating for the slower 2% growth in the latter half. However, the market experienced a cyclical decline in the fourth quarter, with shipments dropping by 3% to 36 million units.
Key Developments in 2024
Apple’s Record Performance
Apple emerged as a key player in the Indian smartphone market in 2024, securing its position as the fourth-largest market globally after the USA, China, and Japan. Apple shipped a record 12 million units, registering an impressive 35% YoY growth. Notably, the brand entered India’s Top 5 smartphone rankings for the first time in Q4 2024, capturing a 10% market share. The iPhone 15 and iPhone 13 dominated sales, accounting for 6% of total shipments during the quarter.
Apple’s growing investment in India’s manufacturing ecosystem also played a pivotal role in its success. With the ‘Make in India’ initiative gaining traction, Apple increased local production, reducing dependency on imports and making its devices more competitively priced. Additionally, strategic partnerships with leading retail chains and e-commerce platforms helped Apple expand its reach beyond metropolitan cities to tier-2 and tier-3 regions.
Changing Pricing Trends
The average selling price (ASP) of smartphones reached a new high of $259, marking a 2% YoY growth. However, this was a significant drop from the double-digit growth seen in previous years. The entry-premium segment ($200-$400) witnessed the highest surge at 35.3% YoY, capturing 28% of the market share. Meanwhile, the premium segment ($600-$800) saw a 34.9% increase, with Apple and Samsung leading the category through popular models such as the iPhone 15/13/14 and Galaxy S23/S24.
With affordability becoming a key factor in consumer decision-making, brands focused on offering exchange programs, cashback offers, and flexible financing options like No-Cost EMI. This trend particularly benefited the premium and entry-premium segments, as consumers were able to upgrade their devices without bearing the full upfront cost.
5G Adoption Surges
The transition to 5G accelerated in 2024, with 120 million 5G smartphones shipped. The share of 5G smartphones grew from 55% in 2023 to 79% in 2024, while ASPs for 5G devices fell by 19% to $303. Budget 5G smartphones ($100-$200) saw a significant rise, capturing a 47% market share. Popular models in this category included the Xiaomi Redmi 13C, Apple iPhone 15, vivo Y28, Apple iPhone 13, and vivo T3X.
The rollout of 5G networks by major telecom providers like Jio and Airtel played a crucial role in driving this adoption. As 5G services expanded to smaller towns and rural areas, demand for 5G-enabled devices increased. Furthermore, government initiatives promoting domestic semiconductor manufacturing are expected to further push 5G adoption by lowering component costs and enhancing supply chain resilience.
Online vs. Offline Sales Trends
The distribution of smartphone sales remained nearly balanced between offline (51%) and online (49%) channels, with both segments growing at an equal 4% YoY. Samsung led the online market, while Apple climbed to the fourth position, with the iPhone 15 being the most shipped online device. In the offline space, vivo retained its dominance, while OPPO and Xiaomi secured the second and third positions, respectively.
With increasing digital penetration and growing trust in online shopping, platforms like Amazon, Flipkart, and Tata Neu saw an uptick in sales. At the same time, brands invested in strengthening their offline presence by opening experience stores and exclusive retail outlets, catering to consumers who prefer hands-on product interactions before making a purchase.
Regional and Consumer Trends
India’s diverse consumer base led to varied smartphone adoption patterns across regions. While metro cities continued to drive premium smartphone demand, tier-2 and tier-3 cities showed remarkable growth in the mid-range and budget segments. Rural areas also witnessed a sharp increase in smartphone penetration due to government-led digital inclusion programs and improved internet infrastructure.
Interestingly, South India led in smartphone adoption, with higher demand for premium models compared to other regions. The North Indian market, on the other hand, saw a surge in budget smartphones driven by affordability and aspirational buying among first-time users. The Western and Eastern regions exhibited balanced growth, with a steady mix of budget and mid-range smartphone sales.
AI-Powered Smartphones on the Rise
Artificial intelligence (AI) has emerged as a major differentiator in smartphone technology. Brands are integrating AI-powered features such as enhanced voice assistants, predictive text, camera optimizations, and battery efficiency enhancements. Generative AI capabilities are expected to be a key focus in upcoming smartphone releases, enhancing user experience through smarter, more personalized interactions.
AI-powered photography has become a significant selling point, with features like automatic scene recognition, real-time image enhancements, and AI-assisted video editing gaining traction. Additionally, AI-driven chatbots and customer support assistants have improved post-sales services, reducing the need for physical service centers.
Market Leadership Shifts
For the first time, vivo overtook Samsung to become the top smartphone brand in India. Vivo’s omnichannel approach, extensive product portfolio, and channel support strategy contributed to this leadership shift. Meanwhile, Nothing recorded the highest annual growth, followed by Motorola and iQOO. The market also saw an increasing presence of smaller brands, with the collective market share of the top five vendors declining from 76% in 2022 to 65% in 2024.
The increasing fragmentation of the market indicates growing consumer demand for differentiation, with brands focusing on unique design, software experience, and innovative features to gain market share.
Tablet Market Sees Resurgence
While smartphones dominated the headlines in 2024, India's tablet market also witnessed a significant upswing. According to IDC’s Worldwide Quarterly Personal Computing Device Tracker, total tablet shipments—including both detachables and slates—reached 5.73 million units, reflecting a strong 42.8% year-over-year (YoY) growth. Detachable tablets grew by 30% YoY, while slate tablets surged by 47.2%. However, the market experienced a slowdown in the fourth quarter (4Q24), declining 17% YoY due to delays in government-related procurement under manifesto commitments.
The consumer segment grew by 19.2% YoY, bolstered by aggressive promotional campaigns by e-commerce players, along with attractive discounts and cashback offers. Samsung led the eTailer channel with a 24.4% share in 2024. On the other hand, the commercial segment saw robust growth of 69.7% YoY, primarily fueled by a 104.5% YoY increase in the education sector. This growth was driven by multiple government-funded education projects, even as the Very Large Business (VLB) segment saw a 9.9% YoY dip.
Top Tablet Vendors in 2024
Samsung retained its leadership position with a commanding 42.6% market share, topping both commercial and consumer segments with 51.1% and 32.1% shares, respectively. In 4Q24 alone, it held a 35.5% share, driven by public sector education deals, widespread consumer reach, and a strategic inventory push during online festive sales.
Acer Group secured the second spot with an 18.7% market share for the year. Its strength lay in the commercial segment, where it captured 32.8% market share by fulfilling several large-scale government and educational contracts. In 4Q24, Acer accounted for 8.9% of the overall market.
Apple ranked third with an 11% overall share. The brand registered a strong 45.3% YoY growth in the commercial segment and a modest 4.7% growth in consumer sales. Its tablets found growing acceptance among senior executives in government, enterprise, and FMCG sectors. Apple held an 18.1% market share in 4Q24.
Lenovo and Xiaomi shared the fourth position with 9% market share each. Lenovo posted an 18.6% YoY growth in the consumer segment, driven by demand for its mid-range models ($150–$250) via online channels. Xiaomi, on the other hand, saw an impressive 101.7% YoY growth, largely due to strong Q3 shipments and a 27.3% share of the total consumer tablet market. Both brands maintained solid 4Q24 performances with 12.5% (Lenovo) and 10.5% (Xiaomi) shares, respectively.
As the line between smartphones and tablets continues to blur—especially with larger screen phones and productivity-focused use cases—the renewed momentum in the tablet market offers a compelling growth narrative alongside smartphones. The education sector, in particular, will likely remain a key driver in the coming quarters, further bolstered by government digital initiatives.
Outlook for 2025
Looking ahead, the Indian smartphone market is expected to grow at a low single-digit rate in 2025, with an estimated annual growth below 5%. The key growth drivers will be the expansion of the mass-market segment ($100-$200) and increased offerings in the entry-premium category ($200-$400). AI-powered smartphones are likely to dominate the market, while affordability and financing options will continue to play a vital role in shaping consumer demand.
With increasing competition and technological advancements, 2025 is set to be another transformative year for India’s mobile phone industry.
