Apple has reached a new high in India as iPhone shipments reach a value of over $10.7 billion, that is around ₹90,680 crore, in 2024, as market researcher IDC India reported recently.
The figure surpasses the combined sales of FMCG giants Hindustan Unilever and Nestlé for FY24, and it even surpasses the government’s budget allocation for the Mahatma Gandhi National Rural Employment Guarantee Act, MGNREGA in the current fiscal year.
Apple retained the top position in the Indian smartphone market by value for the second year in a row. The company outperformed Samsung with a comfortable margin. In terms of value, Apple shipped products worth $7.96 billion between January and September 2024. Samsung shipped $5.23 billion in the same period. That puts Apple at 27% market share by value compared to 23.5% in 2023. Samsung’s share was at 17.7% from 22.5% last year.
Premium Pricing Drives Apple’s Success
Over 85% of its shipments are in the $700-plus category, making it a high-end company. On the other hand, more than 75% of Samsung’s shipments are priced under $400. This has led to an increased value share gap between the two brands.
What were the growth factors?
Apple shipped a record four million iPhones in India alone in the September quarter, driven by strong demand for models such as iPhone 15 and iPhone 13. And by the end of the year 2024, Apple is projected to ship over 12 million units in India, marking 24% year-on-year growth in shipments by value.
Aggressive discounts, financing options, and seasonal sales during festivals like Diwali made older iPhone models affordable, fueling growth. Aspirational brand image, along with a higher resale value for Apple’s devices, has helped Apple continue its success in India.
Samsung in crisis
While the initial sales of Samsung’s Galaxy S24 model during early 2024 were promising, the overall brand performance was weak. It sold its mid-range A, M, and F series models at a higher average selling price compared to last year and also suffered from the onslaught of affordable Chinese brands. Although the Galaxy S23 series gained momentum with heavy discounts during the festive seasons, inventory and offline sales remained an issue.
In contrast, the Indian smartphone market is likely to expand only at a low single-digit rate in 2024, while premium smartphone priced above ₹30,000 will continue growing in market share. In 2024, according to Counterpoint Research, the share of premium phones in the overall market would be 20% up from 18% of the overall market in 2023.
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