This year’s holiday season hasn’t been profitable for smartphone companies either. Smartphone sales did not increase during the 30-day festival. Sales of budget smartphones, in particular, have been hardest hit. Market analysts believe that next year, in 2025, the growth during the festive season will also be in single digits. The latest reports from research institutes Counterpoint and IDC are forcing smartphone companies to develop new strategies.
Demand is flat during festivals
According to a Counterpoint report, smartphone sales grew by only 1% to 2% from late September to mid-October. Even during the festive season last year, 2023, smartphone sales did not grow. However, smartphone sales grew by double digits last year. Sales of mass-market devices were very low during the festive season of 2024, leading to slow industry growth. Demand has been low, especially for smartphones in the budget segment, which has boosted sales.
I don’t like cheap phones.
According to research, the demand for mobile phones priced below $100 (i.e. Rs 10,000) is very low. The market share of this segment was 30% in the third quarter of this year and has dropped to 20% this year. The IDC report shows that the sales volume of the $100 segment in the third quarter of last year was 21%, which has dropped to only 13% this year. Sales of ultra-budget smartphones fell sharply by 35%.
According to IDC data, India’s smartphone shipments last year were 146 million units. However, smartphone shipments will only grow by 1% compared to 2022. According to Counterpoint, shipments in 2023 will be 152 million units. Shipment growth was slow in the first half of the year, but smartphone shipments increased in the second half.
Growth will remain low in the fourth quarter
Smartphone shipments grew in the first three quarters of this year, but growth is expected to slow in the last quarter (the fourth quarter). Smartphone sales plummeted after the festive season. IDC data shows that as of September this year, India’s smartphone shipments were 115 million units. Growth in the first quarter was 12% year-over-year. Meanwhile, it was 3% in the second quarter and 6% in the third quarter.
IDC expects smartphone shipments to be between 35 and 37 million units in the fourth quarter of this year. Shipping data for October to December will be released in January. Therefore, smartphone shipments this year are expected to be 151 to 152 million units. According to Counterpoint’s forecast, smartphone shipments this year are also expected to be 152 million units.
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