Minor Smartphone Brands Drive Major Growth in India's 2024 Market

Despite a challenging environment with muted consumer demand and rising average selling prices, smaller smartphone brands like Motorola, Nothing, iQOO, and Poco have emerged as significant contributors to India's smartphone market growth. According to market tracker IDC, these brands played a key role in the 7.2% year-on-year increase in smartphone shipments during the first half of 2024, marking the fourth consecutive quarter of growth.

Key Drivers of Growth:

Motorola and Nothing were the standout performers in the April-June quarter. Motorola achieved a remarkable 179.7% year-on-year growth, expanding its market share from 2.3% in Q2 2023 to 6.2% in Q2 2024. The company capitalized on online sales, which surged 8% year-on-year, even as offline sales declined due to extreme heatwave conditions. Motorola's success was attributed to its diversified portfolio across all price segments, including premium models like the foldable Razr phones.

Nothing, a newer player in the market, registered a 111.6% growth year-on-year in Q2 2024. The brand's success was fueled by its innovative transparent design and competitive hardware in the budget segment, which resonated well with consumers. Both Motorola and Nothing benefited significantly from strategic positioning on Flipkart, which helped drive their sales.

Other Key Players:

Vivo’s sub-brand iQOO and Xiaomi’s sub-brand Poco also posted strong performances, with year-on-year shipment growth of 31.6% and 17% respectively. Both brands now rank among the top 10 in the Indian smartphone market, while their parent companies continue to dominate the top five.

However, not all brands in the long tail experienced growth. Transsion, which had been one of the fastest-growing brands in 2023, saw a steep 42% decline in shipments year-on-year in Q2 2024. The decline was attributed to inventory build-up and intensified competition from Xiaomi and Realme. Similarly, Google and OnePlus also faced challenges, with Google’s Pixel series perceived as overpriced by consumers, who often wait for discounts, and OnePlus struggling with retail channel conflicts.

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The Indian smartphone market in 2024 is being reshaped by smaller, agile brands that are making significant inroads despite broader market challenges. Brands like Motorola and Nothing are leading the charge with innovative products and strategic partnerships, while traditional heavyweights face renewed competition and market dynamics that demand adaptability and innovation.

Source: ET