SMARTPHONE MARKET
India's high input tariffs stifle smartphone export growth, industry calls for reductions & policy changes in Budget 2024
Union Budget: India's efforts to increase smartphone exports through the production-linked incentive (PLI) scheme face challenges due to high tariffs on input parts and barriers for global firms entering its value chains. Despite the PLI scheme's success in boosting smartphone production beyond domestic demand, these tariffs, averaging 7.4%, are significantly higher than in competitor countries like China's bonded zones where tariffs are 0%.
AI smartphone sales likely to be dull in India in 2024
AI-capable smartphones are projected to constitute only 4-5 per cent of the 152-156 million total smartphone shipments in India this year. Global estimates suggest they will make up 17 per cent of 1.2 billion handsets by 2024. Market experts view smartphones as an ideal platform for AI accessibility due to advancing hardware and software capabilities. However, high prices, starting at $600, may impede widespread adoption in India compared to other markets like China, South Korea, and Japan.
Apple's iPhone shipments in China surge 40% in May amid aggressive discounting
Shipments of foreign-branded phones in China increased by 1.425 million in May to 5.028 million units from 3.603 million a year earlier，calculations based on the data from the China Academy of Information and Communications Technology (CAICT) showed.
Polls and weather take a toll on smartphone sales in June quarter
The smartphone market in the June quarter is likely to be tepid due to the impact of elections, heatwaves, and floods, leading some market experts to lower their growth outlook for 2024 smartphone shipments. Analysts expect a slowdown in Q2 shipments compared to Q1 due to fewer launches and adverse weather conditions. Counterpoint Research forecasts a 3-5% decline in Q2 shipments, with a revised annual forecast of 152 million units, reflecting a 3% year-on-year growth, down from the initial 5% growth prediction.
Online phone sales pick up in April, may hot up in summer
Online smartphone sales surged in April after a dip in Q1 2024, driven by Chinese brands shifting focus to online channels, as reported by Counterpoint Research.
Quick may click with electronics too: Instamart, BBNow, others plan to extend superfast delivery to handsets, white goods by Diwali
Swiggy Instamart, Zomato, and BigBasket plan to expand quick commerce services to electronic products and white goods categories, delivering within 10-45 minutes by Diwali.
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Vivo set to open ₹3,000-cr India facility in July
Chinese smartphone maker Vivo is set to inaugurate one of India's largest mobile phone manufacturing facilities next month, with an annual capacity of 120 million devices. The facility is being set up with an investment of over ₹3,000 crore.
Most phones sold online end up in grey market
A New Delhi-based retailer aware of the practice said the aggregators, or “cutters”, have hundreds of user accounts on online platforms, operated by a network of young people under their employment who place orders from different accounts to work around platforms’ restrictions on the number of units a customer can buy in one transaction.
Chinese smartphone brands drive AI proliferation in 2024, led by Oppo
The second half of 2024 will see a surge in generative AI use in smartphones, spearheaded by Chinese brands like Oppo, Nothing, and Vivo. Analysts predict more AI features in lower-priced models, expanding beyond premium flagships. Oppo leads with over 100 AI capabilities and 5,399 AI patents. With AI phones projected to make up 11% of the global market, the segment will see significant growth, particularly in sub-$1000 models, driven by aggressive innovation from Chinese manufacturers.
Vivo to take on Samsung with locally-made foldable launch
Chinese smartphone maker Vivo is set to launch its first foldable smartphone, XFold3 Pro, aiming to penetrate the premium segment and compete with Samsung and Apple by offering an enhanced user experience. Assembled in India with local materials, the device will hit shelves in early July. It will be priced above Rs 1 lakh, as Vivo looks to expand its market share and cater to discerning customers seeking trust and innovation in their smartphone choices.
Motorola Moto G04s set to hit Indian smartphone markets, launch date announced
The Indian smartphone market is anticipating Motorola's next release, the Moto G04s. The official release on May 30 has been hinted to by the leading online retailer, Flipkart.
Cheaper 5G phones chip away at average prices
Flat Average selling prices (ASP) in the March quarter was largely due to a 22% on-year rise in shipments of mass budget phones priced at $100-200 at 16.3 million units, compared with 13.4 million units a year earlier, marking a resurgence from previous quarters.
Motorola Moto G04s set to hit Indian smartphone markets, launch date announced; Check details
Motorola's upcoming release, the Moto G04s, is generating anticipation in the Indian smartphone market. The top e-commerce site, Flipkart, has hinted at the official release on May 30.
Local smartphone maker Lava rejigs board
Lava International has restructured its board, elevated leadership members, and added two independent directors. The move follows co-founder Hari Om Rai's resignation from the board following the Vivo money laundering case. The company plans to raise Rs 500-600 crore in the next fiscal, aiming to challenge Chinese domination in the smartphone market.
Google to make Pixel in Tamil Nadu, confirms MK Stalin; drones coming up next?
Alphabet Inc., led by Sundar Pichai, will produce its flagship smartphones in Tamil Nadu, announced Chief Minister MK Stalin. Partnering with Foxconn, they plan to manufacture Pixel phones and potentially drones. This move aligns with Google's 2023 announcement to manufacture Pixel 8 smartphones in India, following Apple and Samsung's production shifts.
Poco plans to sell 10 million smartphones in 2 years, aims to be among top-5 brands from third year
At the event Poco unveiled three variants of Poco F6 priced at Rs 25,999 with 8 GB RAM and 256 GB ROM storage for files, photos etc, Rs 27,999 for 12 GB RAM and 256 GB ROM variant, and Rs 29,999 for the model with 12 GB RAM and 512 GB ROM.
Smartphone Co HTech plans to raise $100 million to diversify operations
"We've already ploughed in $10 million into the business and are now looking to raise another $100 million, of which $20 million will be raised in the next six months," Madhav Sheth, chief executive officer of HTech, told ET. The smartphone player will be looking to dilute equity in the company - in which Sheth is now a majority shareholder - to raise the funds. "When you are doing something for the first time, having an equity partner will ensure the scale of growth is much faster," the executive said.
Google's India alphabet P for Pixel, D for Dixon: Local contract manufacturer will make Google Pixel 8 smartphones
Dixon Technologies to manufacture Google Pixel 8 smartphones in India to compete with Apple and Samsung in the Rs 50,000-plus price range. Google aims to increase its market share in India despite import duties, considering Foxconn as a potential manufacturing partner.
Chinese smartphone companies looking to expand their footprint face a loud adversary—Indian retailers
Chinese smartphone brands face retailer backlash in India over low margins, delayed payments, and stock issues. Retailers demand higher margins and timely settlements, impacting brands' offline expansion plans in a shifting smartphone market.
For phones, Indians think China again
Chinese smartphone brands, including Xiaomi, Vivo, Oppo, Realme, Transsion, and Motorola, have seen their cumulative market share rise to 75% in the March quarter, despite government scrutiny. This growth is attributed to a shipment rebound by top brands like Xiaomi and Vivo after a few tepid quarters in 2023 due to low demand and inventory bottlenecks. Smaller brands like Motorola and Transsion have also expanded their footprint in the market.
Smartphone shipment volumes surge in Q1, outlook stays strong
According to market research firms Counterpoint Research and Cybermedia Research (CMR), the Indian smartphone market witnessed an increase in shipment volumes by 8-10% year-on-year during the first quarter of 2024. These market trackers anticipate further growth in the high single-digits for the remainder of the year, attributed to the trend towards premiumization and the adoption of 5G technology.
Indian smartphone market grows 8-10 per cent in March quarter
India's smartphone market showed growth in 2024, led by Samsung and Apple. The premium segment saw significant expansion, driven by the iPhone 15 series. 5G adoption and post-COVID upgrades are expected to drive further growth.
Smartphone shipments up 10% in March quarter
Counterpoint said Vivo took the lead in the smartphone market in the March quarter for the first time with 19% volume share, even as Samsung led in terms of revenue. Xiaomi was the second-largest brand, with volumes surging 28% on-year during the quarter, cornering 18.8% of the market. Samsung was number 3, by volumes.
Offline smartphone sales surge in March quarter as buyers seek premium feel
Rising offline sales come amid strong demand for premium handsets where the touch-and-feel experience is crucial for customers before purchasing, say experts. Offline stores are also offering a bouquet of financing options such as no-cost monthly instalments, paper-based financing, and GST credit, along with some headroom for negotiation in the final price.
Smartphone companies dial up after-sales service network
"Established industry players are increasingly embracing apprenticeship initiatives aimed at cultivating a skilled workforce. These programmes offer courses such as service engineer IT hardware, repair technician, wireman control panel electronics, and electronics mechanic, targeting students who have completed 8th or 10th grade for entry into the field," he added.
India smartphone up 15% on year in Q1, continues recovery: Canalys
The Indian smartphone market rebounds, reaching 35.3 million units in Q1 2024, a 15% YoY growth, as per Canalys. Samsung leads with 19% market share, followed by Xiaomi and Vivo. Xiaomi's resurgence is fueled by budget phones and Poco's X6 series. Other brands like Motorola, Infinix, and Apple also show strong growth. Despite this, mass-market brands face sluggish demand, prompting a shift towards value-driven strategies.
Rise in second-hand smartphone demand prompts brands to prevent unorganised market access
The demand for second-hand smartphones is on the rise, prompting brands and seller platforms to prevent old devices from reaching the unorganised market. Refurbished smartphone seller ReFit Global anticipates a 16% growth in the industry in 2024, following a 15% growth in 2023. E-commerce platforms and smartphone brands are collaborating with refurbishing companies to sell old devices directly, streamlining the process and preventing leakages.
Ways to take care of your smartphone and keep it running smoothly
Invest in a sturdy case and a screen protector. A good case will shield your phone from bumps and drops, while a screen protector will guard against scratches and cracks.
Infinix India CEO emphasizes clear product differentiation amidst smartphone market confusion
Infinix India CEO Anish Kapoor highlighted the issue of smartphone brands offering similar features, causing confusion among customers. To differentiate, Infinix focuses on clear-cut distinctions for each product. Despite a stagnant market, Infinix saw a 30% year-on-year growth in shipment volumes in 2023, increasing its market share from 2.4% to 3.1%.
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