India’s smartphone market experienced a notable increase, marked by a 3% year-on-year uptick in volume and a 12% rise in value during the third quarter of 2024, reaching unprecedented figures, as per Counterpoint’s research. Notably, 5G smartphones comprised 81% of the total shipments, with a significant 93% penetration in the Rs 10,001-15,000 price range, reflecting the Indian consumers’ inclination for budget-friendly 5G devices.
The division of market share among smartphones from Chinese, Indian, and global brands has remained largely stable over the past five years. Efforts under the ‘Make in India’ initiative to localize smartphone production have not significantly impacted the dominance of Chinese brands in the Indian market. Indian consumers, known for their price sensitivity, continue to favor affordable Chinese smartphone models equipped with advanced features.
While governmental attempts to shift the market away from Chinese dominance have had limited effects, MediaTek has emerged victorious in the smartphone chipset arena, capturing a substantial 54% market share. Apple leads the premium smartphone category with a 35% share, followed closely by Qualcomm at 28%. This trend underscores the growth propelled by both cost-effectiveness and technological innovation by these companies.
In the realm of chipsets, which cover myriad functions like cellular communication, Wi-Fi, Bluetooth, and power management, Chinese smartphones have maintained their market presence. However, Chinese chipset manufacturers have experienced only modest growth within India. According to Counterpoint, UNISOC held an 11% share in the global smartphone chipset market from Q2 2023 to Q3 2024, while HiSilicon (Huawei) maintained a mere 2% share. Globally, Chinese producers face hurdles due to US-led sanctions, with potential blacklisting over security and data privacy concerns posing further challenges.
This global backdrop positions India with a strategic opportunity to develop its chip industry, starting afresh with significant initiatives. The government is investing USD 10 billion to establish a robust domestic semiconductor ecosystem, aimed at not only reducing dependency on imported semiconductors but also positioning India as a future exporter of chips.
With the global semiconductor market projected to reach USD 1 trillion by 2030, India strives to claim a substantial portion of this burgeoning market through its proactive measures. (ANI)
(With inputs from agencies.)
