Vivo has secured the top spot in the Indian smartphone market for the first time, capturing a 19 percent market share with 9.1 million units shipped in Q3 2024.
The Indian smartphone market saw a 9 percent growth in Q3 2024, with 47.1 million units shipped. Smartphone vendors focused on clearing inventory during early monsoon sales to prepare for the upcoming festive season. However, sluggish early festive demand, driven by rising food inflation and slow urban spending, affected the market.
Vivo:
Shipments: 9.1 million units (up from 7.2 million units in Q3 2023).
Market Share: Grew from 17 percent to 19 percent.
Annual Growth: 26 percent.
Vivo experienced substantial growth, gaining the top spot for the first time in India. This growth was driven by aggressive pushes across both online and offline channels and a focus on higher-priced models
Sanyam Chaurasia, Senior Analyst at Canalys, credited Vivo’s rise to its strategy across channels, bolstered by new product launches in higher price brackets.
Xiaomi followed closely in second place with 7.8 million units shipped, benefiting from its budget 5G lineup.
Xiaomi:
Shipments: 7.8 million units (slightly up from 7.6 million units in Q3 2023).
Market Share: Declined slightly from 18 percent to 17 percent.
Annual Growth: A modest 3 percent.
Xiaomi maintained its strong position but did not show significant growth compared to competitors. The slight market share decline indicates it is losing ground to more aggressive competitors like vivo and OPPO, though it remains strong in the budget 5G segment.
Samsung secured third place with 7.5 million units.
Samsung:
Shipments: 7.5 million units (down from 7.9 million units in Q3 2023).
Market Share: Dropped from 18 percent to 16 percent.
Annual Growth: –4 percent.
Samsung saw a decline in both shipments and market share, suggesting it is under pressure from aggressive competitors like vivo and Xiaomi. The company may need to rethink its strategy to remain competitive in a price-sensitive market.
OPPO and realme rounded out the top five, shipping 6.3 million and 5.3 million units, respectively.
OPPO:
Shipments: 6.3 million units (up from 4.4 million units in Q3 2023).
Market Share: Increased from 10 percent to 13 percent.
Annual Growth: 43 percent, the highest among the top five vendors.
OPPO’s impressive growth highlights its success in expanding its online presence and launching competitive mid-to-high-range smartphones. This aggressive strategy has paid off, helping it capture market share quickly.
OPPO also leveraged expanded online portfolios, like the T3 and K12 series, to boost volumes beyond traditional offline strengths. The overall market witnessed an expansion of mid-to-high-range offerings as brands anticipated clearing inventory during festive sales.
Meanwhile, brands outside the top five, including Apple, Motorola, Google, and Nothing, experienced strong quarters. Apple, in particular, saw robust demand for the iPhone 15 from smaller cities.
Inventory Buildup Due to Weaker Festive Demand
Canalys highlighted that most vendors aggressively shipped devices to meet festive demand, but weak traction could lead to inventory buildup. Higher-priced models were favored by replacement and upgrade buyers, driven by mid-to-high-end offerings, trade-in deals, and financing options. However, entry-level demand was weak as rising prices led consumers to delay purchases.
The Indian smartphone market is expected to see significant growth in the sub-₹10,000 5G segment in 2025, Canalys research indicated.
Brands will need to offer more than just 5G capability to attract consumers in this segment, as competition from feature phones and the second-hand market remains strong. Canalys projects modest single-digit growth for 2025.
Baburajan Kizhakedath
