Mobile phone sales across India have been declining for 12 months straight. But unbelievably, it has been hitting new peaks in one category — the premium high-end smartphone category.
In demand are phones in the above 30,000 rupees premium categories, with the likes of Samsung’s A-series and F-series and Apple iPhones flying off the shelves. The growth in the premium segment has been a whopping 112 per cent, even as the total smartphone market saw a decline of 3 per cent year-on-year in the April-June period.
While Samsung led India’s smartphone market with an 18% market share and surpassed Apple to come toppers in the premium segment, the maker of the iPhone can take solace in the fact that its recent India-focused moves, including opening Apple stores, online push and expanding production tie-ups in the country, is showing results. Apple’s flagship iPhone continued to lead the ultra-premium segment (phones costing above 45,000 rupees) with a 59% share.
5G might have been a big driver in sales improving (the drop of 3% in the last quarter is an improvement on the previous three quarters as far as the percentage of drop goes), with total 5G phone shipments in the country crossing the 10 crore mark.
“5G upgrades also played a major role as OEMs kept launching 5G devices in the Rs 10,000–15,000 segment for a wider reach,” said Shilpi Jain, senior research analyst with Counterpoint, the consultancy which unveiled the figures. “We believe brands will be coming up with interesting launches and offers to lure consumers during the festive season and 5G will be a big growth driver here,” she added.
With the festive season approaching, Counterpoint expects sales of smartphones to pick up pace in the country and leave the decline witnessed in the past one year behind.
It also believes the premiumisation trend, of people going in for pricier models, is here to stay. ‘Rise of a value-based incentive system for retailers, aggressive promotions, availability of credit through various financing schemes, and OEMs’ focussed approach are driving premiumisation in India,’ Counterpoint said in a note issued Monday afternoon.
Another interesting trend has been the growth of offline sales. It is expected to be more than half of all phone sales in the country this year. Even online-first brands like Xiaomi, realme and OnePlus are now emphasising offline expansion to enhance customer engagement and ecosystem development.
Samsung and Apple are also increasing their offline presence to cater to diverse consumer preferences. This shift reflects a more comprehensive approach, leveraging both online and offline channels to create a seamless and personalised customer experience, Counterpoint said in its note.
