The Canalys Report 2024 is here, and it paints a fascinating picture of where the Indian smartphone market stands today. As someone who has closely followed the ups and downs of this industry, I’ve gone through the report to break down what it means for brands, consumers, and the future of the market. Here’s a closer look at the trends, challenges, and opportunities it highlights.
The Big Picture: A Year Of Muted Growth
Despite longer replacement cycles driven by increasingly durable devices, the Indian smartphone market grew by 5% in 2024, with shipments reaching 156 million units. Affordable 5G smartphones in the USD 100-200 range played a big role in driving this growth, signalling a shift in what consumers are looking for in the mass market.
Key Takeaways from the Canalys Report
Affordable 5G gains momentum, but sub-USD 100 struggles
While the USD 100-200 segment has seen success, the sub-USD 100 5G market hasn’t quite taken-off as expected. With economic challenges, affordable 4G options, and a lack of clear advantages in low-cost 5G devices, many consumers are holding back. Xiaomi’s Redmi A4 5G is a prime example – despite its competitive specs, the response has been lukewarm.
Post-festive inventory pileup
After the festive season, most brands, except for Vivo and Apple, were stuck with excess inventory. This highlights a recurring issue in the industry: aligning shipments with actual market demand.
Apple’s dominance in premium devices
When it comes to the super-premium segment (USD 800+), Apple is still king. Its dominance reflects not just product quality but the aspirational value of its ecosystem, which continues to captivate Indian consumers.
Samsung and Xiaomi face sharp quarterly declines
Samsung and Xiaomi had a tough Q4, with shipments dropping by 2.2 million and 1.5 million units, respectively. Samsung’s 29% decline is particularly concerning and points to deeper issues with retailer relations with respect to price and offer parity with online, and availability of stocks for key-selling models.
Vivo’s consistent growth
Vivo is the only brand that managed to grow its market share QoQ throughout 2024. Its focus on building a balanced portfolio and maintaining strong relationships with its retail partners has clearly paid-off.
Apple’s late-year surge
Apple had a spectacular Q4, overtaking Realme and closing in on Oppo. This success was driven by strategic pricing, local manufacturing benefits, affordability options and strong marketing campaigns.
Samsung’s woes with market share
Samsung’s continued decline in market share throughout 2024 is a serious red flag. Unless the brand takes immediate corrective action with respect to its product lineup and channel balancing, it risks losing its competitive edge.
Oppo’s inventory rollercoaster
Oppo experienced a spike in shipments in Q3, followed by a significant dip in Q4 due to overstocking. This highlights the importance of sustainable growth and better inventory management.
Xiaomi’s struggles continue
Xiaomi’s decline in market share since Q2 2024 is troubling. The brand needs to innovate and reconnect with its audience to stop the slide.
Realme drops out of the top five
After years of success, Realme slipped out of the top five rankings in 2024. With Apple’s Q1 2025 performance likely to be more subdued, Realme has a chance to bounce back – but it must act quickly.
Looking Ahead To 2025
The report also gives us some hints about what’s coming next. Here’s what brands will need to focus on:
• Mid-range smartphones: The USD 100-400 segment will remain the largest and most important, contributing around 65–70% of the market.
• AI innovation: Exciting new AI-driven features could be the spark needed to convince consumers to upgrade.
• Mainline channel: This remain critical, especially in smaller cities and towns where customers value hands-on experiences and personal trust with retailers.
Apple’s Strategic Play: A Closer Look
Apple is doubling down on India, and its strategy is both calculated and inspiring:
Pro Series push: With local manufacturing helping to lower costs, Apple will aim to drive upgrades to its Pro series, combining premium appeal with competitive pricing.
Reaching smaller cities: Apple is no longer just for metro customers. Its products symbolize success, and the company is set to tap into the aspirations of consumers in smaller towns and cities.
Building the ecosystem: Beyond iPhones, Apple will focus on creating demand for its ecosystem - AirPods, Apple Watches, and more. It’s all about offering a seamless, interconnected experience.
Flagship store expansion: Apple’s stores are more than just retail outlets - they’re hubs for experiencing the brand. With two stores already in India, we can expect more of these iconic spaces to open soon.
Winners And Losers: A Snapshot
2024 was a year of contrasts:
Declines: Samsung (-10%, 2.7 million units) and Realme (-5%, 0.8 million units).
Gains: Oppo (+16%, 2.6 million units) and Vivo (+13%, 3.4 million units).
Xiaomi: A modest gain of 1.5 million units, but a troubling trend of decline in market share.
Final Thoughts: Lessons From The Canalys Report
The 2024 Canalys Report is a reminder that in the smartphone industry, standing still is not an option. As 5G adoption reaches its peak and economic pressures grow, brands will need to evolve rapidly to stay relevant.
For 2025, the focus must be on mid-range volumes, AI-driven innovation, and stronger mainline presence. The competition is fierce, but with the right moves, there’s plenty of opportunity for brands to thrive.
I have also summarised the Canalys Report 2024 in my Linkedin post, you can check it out here: https://www.linkedin.com/posts/ajaysharma1958_vivo-xiaomi-samsung-activity-7287896768346832897-LdOA?utm_source=share&utm_medium=member_android
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