Surge in Luxury Smartphone Sales in India Driven by Rising Disposable Incomes
New Delhi: The rise in disposable incomes and a growing premiumisation trend have significantly boosted the sales of luxury smartphones in India, according to industry experts. Recent data reveals a substantial increase in the shipment of smartphones priced at Rs 1 lakh and above.
Counterpoint Research reports that shipments of luxury smartphones increased by 20% year-on-year (YoY) in Q1 2024 and 10% YoY in Q2 2024. This segment, which accounts for just over 1% of the overall market, is anticipated to see a slight increase in market share in the latter half of the year, driven by the launch of new Samsung Galaxy Foldables and the latest Apple iPhone series, noted Tarun Pathak, Director at Counterpoint Research.
The luxury smartphone sector has demonstrated impressive growth over the past few years. In 2021, the segment grew by 14% YoY, which surged to 96% in 2022 and moderated to 53% in 2023. Samsung led the super-premium market with a 52% share in 2023, while Apple held a 46% share.
Prabhu Ram, VP of the Industry Research Group at CyberMedia Research (CMR), highlighted that the premiumisation wave in the Indian smartphone market is gaining momentum. “Consumers are increasingly favoring smartphones that offer superior specifications and serve as lifestyle statements,” he said. Insights from CMR indicate an impressive 80% YoY growth for ultra-premium smartphones (Rs 1 lakh and above) in the first half of this year.
In terms of market value, Samsung led with a 25% share in the April-June quarter, followed by Vivo and Apple. Apple is expected to regain ground in the upcoming quarter, buoyed by recent price reductions across its iPhone range.
Additionally, the shipment of 5G smartphones in India reached a record 77% of the overall market in Q2 2024, attributed to falling average selling prices (ASPs). The ongoing trend reflects a robust demand for advanced smartphone technology and highlights a significant shift towards premium devices in the Indian market.
