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India 5G smartphone demand soars, but shipments fall 2% in Q2
The country achieves its highest-ever Q2 value as consumers upgrade to higher-value smartphones
Despite the demand for 5G handsets in India, the total shipments of smartphone in the country fell 2% year-on-year in Q2 2024, a report from Counterpoint Research showed.
According to Counterpoint’s Monthly India Smartphone Tracker, the decline was influenced by a heatwave, a seasonal slump, and a slower demand from Q1 2024.
Senior Research Analyst Shilpi Jain said heatwave conditions in various regions led to lower footfalls in offline channels and delayed smartphone purchases as consumers prioritised appliances like air conditioners and refrigerators.
“This reduced demand caused an inventory build-up. However, summer sales at online channels, good harvest and aggressive promotions towards the end of the quarter provided relief to OEMs, helping close the quarter on a better note than at the beginning,” Jain said.
In terms of the market’s value dynamics, Research Analyst Shubham Singh said India’s smartphone market achieved its highest-ever Q2 value in Q2 2024 due to the ongoing trend of premiumisation.
“Consumers continued to upgrade to higher-value smartphones, supported by better trade-in values and easy financing schemes. This resulted in a 24% YoY growth in the ultra-premium segment,” Singh said.
Counterpoint figures indicate that 5G smartphones made up about 60% of smartphones sold in China in 2020, 15 months after the service was launched in October 2019.
