India’s smartphone market faced a 4% decline in Q4 2024, with shipments reaching 37.2 million units, according to the latest Canalys research. This decrease was attributed to vendors adjusting inventory following the festive season. Despite the dip, key players like vivo, Xiaomi, and Samsung maintained strong positions in the market. Vivo held the top spot in Q4 2024, shipping 7.5 million units and commanding a 20% market share. Xiaomi closely followed with 5.7 million units, and Samsung secured third place with 5.4 million units. OPPO (excluding OnePlus) and Apple rounded out the top five, with shipments of 4.2 million and 4.0 million units, respectively.
Apple captures a top-five spot for the first time
Apple’s position in the top five was bolstered by aggressive promotions and strong festive season demand. For the full year, India's smartphone market grew by 5%, reaching 155.9 million shipments. The pandemic refresh cycle and 5G upgrades were key drivers of this growth, with vendors launching new devices in the first three quarters, often targeting higher price segments.
Buyback programs and trade-in offers boost sales in the premium segment
The premium segment saw continued growth despite overall shipment declines. Apple, in particular, made significant strides by offering channel-driven promotions such as the ‘Buyback Program’ and the ‘iPhone for Life Program’. These schemes, alongside interest-free EMI plans, helped improve affordability for consumers and drove upgrade sales. Merchants, recognizing the strong brand appeal of Apple, were willing to absorb the costs of running these programs.
Samsung also saw resilient demand for its Galaxy S23 and S23 FE models in Q4, thanks to similar channel-driven strategies like trade-in offers and extended warranties. These incentives have proven effective in stimulating interest in premium devices despite a general slowdown in shipments.
Looking ahead: modest growth expected in 2025
While 2024 marked a strong year for India’s smartphone market, Canalys projects only modest single-digit growth in 2025. The sub-US$ 100 segment, facing macroeconomic pressures and competition from feature phones, is expected to struggle. However, demand in the US$ 100 to US$ 200 price range is anticipated to remain strong, especially with continued 5G adoption.
The premium segment will also face challenges as the pandemic replacement cycle nears its end. High-end refurbished devices are gaining popularity, as urban consumers hold onto their devices longer. To drive further growth, brands will need to invest in consumer education and optimize retail channels.
Conclusion
Despite challenges in Q4 2024, buyback schemes and channel-driven strategies have played a key role in boosting smartphone sales, particularly in the premium segment. As brands prepare for 2025, a strategic focus on value-driven promotions will be essential to sustaining growth, especially in the face of rising competition and market saturation.
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