Entry stage smartphone section declines by 36% within the first half of 2024

Because the wave of premiumisation within the handset area continues to persist, the reasonably priced class for smartphones declined but once more within the first half of the 2024 calendar 12 months. Based on a report by IDC analysis, the entry-level section for smartphones (sub $100) in India skilled a powerful decline of 36 per cent year-on-year to a complete of 14 per cent total market share in India. Throughout the identical interval final 12 months, the sub $100 smartphone class had a 22 per cent market share. 

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Consultants imagine that the decline in market share for entry-level telephones is a results of OEMs introducing fewer fashions within the class. 

Based on the IDC report, smartphone shipments to India grew by 7.2 per cent year-on-year to 69 million items within the first half of 2024. Nevertheless, progress in shipments is primarily pushed by the mass price range ($100 to $200) and largely by the mass premium ($200-$400) class.

The entry-level section, however, witnessed a powerful year-on-year decline of 36 per cent to a 14 per cent total market share, down from 22 per cent. This comes even with gamers like JioPhone and Transsion had been supposed to enliven competitiveness within the class. At the moment, in response to the IDC report, Xiaomi continues to dominate the market within the entry-level area adopted by Poco and Realme. 

These numbers are largely in keeping with the broader tendencies which were noticed because the pandemic-induced chip scarcity. Because the buying capability of these within the financial fringes stays weak, and the general chipset provide for entry-level telephones stays poor, smartphone firms are launching fewer fashions within the entry-level class preferring to vie for a share of the premium smartphone market which noticed a significant increase as middle-class Indians and above have begun to purchase dearer handsets. 

Faisal Kawoosa, Chief Analyst at Tech Arc defined, “The decline within the entry-level smartphone section is essentially supply-based. The pandemic-induced chip scarcity induced the worldwide chip market to largely prioritize 5G chipsets (that are dearer) over chipsets for the entry-level class of smartphones. OEMs additionally devoted their focus to this section particularly because the premium or the mass premium section offers them significantly better margins over entry-level telephones.” 

Kawoosa believes that the entry-level smartphone section is anticipated to get better in 2025. “The premium section in India has reached saturation,” Kawoosa defined, “which suggests OEMs must shift their give attention to the entry-level section because it has the headroom to develop,” he stated.

Certainly, in response to the IDC knowledge, “The premium section (US$600<US$800) held a 2 per cent share and declined by 37 per cent in unit phrases within the first half of 2024.”

In July, Qualcomm launched its first 5G chipset within the sub-$99 class, signalling the possible shift in focus for the smartphone business total.