India to sell over 100 mn smartphones in H2 2024; 5G and foldables to drive growth: Techarc report

The report states that 5G has become a default cellular technology expected by consumers.

India is expected to sell over 100 million smartphones in the second half of 2024. Techarc, a technology analytics, research, and consulting company, in its latest report, said that the total annual sales of smartphones for 2024 would be around 158 million. This would likely mean a 7-9 per cent increase in the volume of sales over previous years.

 The hike in sales is owing to the harmonisation of sales potential across all segments after the focus on lower-tier segments, routine replacement and upgrade cycle sale, AI innovations, form factors and CMF attracting a niche segment of early adopters.

“The big shift in the strategy of smartphone OEMs after the covid era will start showing its impact in the second half of 2024 and define the market dynamics for the next couple of years for the smartphone industry in India,” said Fasial Kawoosa, chief analyst and founder of Techarc.

Kawoosa added that post Covid-19, smartphone OEMs started prioritising premium market segments, driving value growth and turning the volume growth stagnant to negative. “Now, the OEMs are leveraging the technology waterfall and diversifying their portfolio across the customer segments they want to focus on. This is a big shift and will drive a balanced growth in value-volume measures of the market,” he explained.

Mid-term trends

Based on the report, the review of the mid-term smartphone market revealed some key trends. The first notable trend is that 5G has become a default expectation for consumers fuelling demand across all price segments. This demand was consistent even in areas where 5G was not yet accessible. Owing to this, nearly 80 per cent of smartphones sold in the second of the year are expected to be 5G-enabled with a significant push in the Rs 8,000 and Rs 12,000 segment.

AI and CMF (colour, material, finish) have emerged as key differentiators. However, these innovations are more likely to extend the life cycles of smartphones instead of boosting revenues. This is mainly because they considerably enhance software and hardware durability. Moreover, the foldable form factor seems to be finding resonance with Indian consumers. The form factor is gaining traction with over 1 million sales expected by the end of 2024. Witnessing the new-found growth in the segment, OEMs are encouraged to package foldable devices with unique features to enhance the overall appeal.

Moreover, the market is stabilising and no single sales channel is expected to dominate as both online and offline channels have struck an equilibrium. The top smartphone brands’ share is anticipated to decline, and this will make room for brands like Poco, Motorola, Nothing, etc. According to the report, this shift will likely yield a more diverse market where brands would be required to target specific consumer bases to succeed.

Source