India's smartphone market has witnessed a significant growth in the third quarter of 2024, with a 3% increase in volume year-on-year. Samsung has emerged as the market leader in terms of value, holding a 23% share, closely followed by Apple with a 22% share. This growth has been attributed to the premiumisation trend in the market, supported by aggressive EMI offers and trade-ins.

Samsung has been focusing on its flagship Galaxy S series and enhancing its value-driven portfolio. The company is integrating Galaxy AI features into its mid-range and affordable premium models in the A series, encouraging consumers to upgrade to higher price segments. On the other hand, Apple has been aggressively expanding into smaller cities, driving significant value growth with an increased focus on newer iPhones.

Emergence of New Players and 5G Adoption

The Indian smartphone market has also seen the rise of new players. Nothing, a brand that has been growing rapidly for the third successive quarter, recorded an impressive 510% YoY growth in shipments in Q3 2024, entering the top 10 for the first time. The brand's growth was fueled by portfolio expansion, strategic market penetration, and partnerships with over 800 multi-brand outlets across more than 45 cities.

The value of the Indian smartphone market surged by an impressive 12% (on-year) to reach an all-time record for a single quarter. This growth was driven by the earlier onset of the festive season when compared to 2023. OEMs proactively filled channels, ensuring that retailers were well-prepared for the expected surge in sales during the festive season.

5G smartphones captured their highest-ever share of 81% in the overall shipments. In the Rs 10,001-INR 15,000 segment ($120-$240), 5G penetration reached 93%, with brands focusing on introducing 5G models in the budget segment.

Expansion into Smaller Cities and the Role of Technology

The growth of the Indian smartphone market is not just limited to the major cities. Smaller cities have also emerged as a significant market for premium brands like Apple, accounting for over 60% of sales. This expansion into smaller cities is driving significant value growth for these brands.

The global pandemic and the ascent of eCommerce have intensified the influence of technology. Retailers have leveraged technology innovations to enhance efficiency while remaining steadfast in their commitment to customer centricity. The result is total experiences that delight both customers and employees.

In conclusion, the Indian smartphone market has witnessed significant growth in Q3 2024, driven by the premiumisation trend and the aggressive expansion of major brands into smaller cities. The market is expected to continue its growth trajectory, driven by the increasing penetration of 5G smartphones and the growing demand for premium smartphones. The rise of new players and the expansion into smaller cities highlight the dynamic nature of the market, offering exciting opportunities for both consumers and businesses.