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South Asia smartphone market grew in Q2 2024 with 2.9m units shipped
Celebrations helped to retain the double-digit increase in the region.
Smartphone shipments in South Asia have experienced a 39.5% year-over-year (YoY) growth in Q2 2024 with 2.9 million units — continuing a strong double-digit increase from Q1, according to analyst firm IDC.
Based on the latest IDC report, the growth in the market was observed during various celebrations in different countries.
Bangladesh shipped 2 million units during the quarter with 20.1% YoY growth. This was attributed to the festive season of Eid which provided an opportunity for brands to introduce offers and discounts to consumers.
In Nepal, smartphone shipment continued to grow for three consecutive quarters with 548,000 units shipped and 77.8% YoY growth, as brands launched affordable and “high specs” smartphones during Nepali New Year and Buddha Jayanti.
Meanwhile, Sri Lanka’s market shipped 365,000 units with 218% YoY growth, showing a triple-digit growth trend for five consecutive quarters. The report noted that the quarter had been a celebration time for Sinhalese New Year, Vesak Poya, and Poson, in which new brands and new models were launched.
“Nepal and Sri Lanka are expected to continue the growth momentum in 3Q24, with the onset of the Diwali festive period in Nepal and expansion of Chinese brands in Sri Lanka through channel partnerships,” says IDC Senior Market Analayst Anjney Bhardwaj.
However, Bhardwaj added that the political unrest and floods are likely to result in a sharp drop in the Bangladesh market in Q3 2024.
The average selling price of smartphones in the region also continued to increase, growing by 19.2% YoY and reaching $152 in Q2 2024. The low-end segment ($100<$200) accounted for 50% of the market, followed by the ultra-low-end (<$100) segment with a 34% share and the mid-range ($200<$400) segment with a 13% share.
Transsion led the ultra-low-end segment in all three countries, Xiaomi for the low-end segment in Bangladesh and Nepal, Samsung in Sri Lanka, and Vivo led the mid-range segment in Bangladesh, Samsung in Nepal, and Honor in Sri Lanka.
The market also continued to be dominated by retail channels with a 98% share as consumers prefer to see the device before purchase, which is made easier by easy accessibility in multi-brand outlets and large chain store expansion by national distributors, particularly in Sri Lanka.
