According to the data released by Canalys, the Indian smart phone market increased by 1% in the second quarter of 2024, with a total shipment of 36.4 million units, due to the impact of various factors such as the Indian general election, seasonal low demand, and extreme weather in some regions. Amid high inventory levels, some manufacturers continue to launch new, higher-priced models, while others focus on reducing existing inventory to optimize inventory before the holiday season arrives. After six quarters, Xiaomi regained its top spot with a shipment volume of 6.7 million units and an 18% market share. Vivo followed closely behind with a shipment volume of 6.7 million units, mainly thanks to affordable 5G and mid-range models. Samsung ranked third with a shipment volume of 6.1 million units. Realme and OPPO (excluding OnePlus) ranked in the top five with shipment volumes of 4.3 million and 4.2 million units, respectively.

Canalys Senior Analyst Sanyam Chaurasia said, "In the second quarter of 2024, mainstream market brands will expand their high-end product portfolios and use the rainy season to clear inventory, creating space for new machines before the holiday season arrives. Brands such as Xiaomi have strengthened their high-end product lineups, driving this quarter's shipment volume with the updated colors of the Redmi Note 13 Pro series and the Xiaomi 14 Civi with high-quality cameras and unique leather design. Meanwhile, Vivo's success in the mid-range market is mainly due to the V series and Y200 Pro, which focus on exquisite design and photography, and are promoted through LFR retail stores. Although Realme plans to clear high inventory during the rainy season e-commerce sales period, it still expands its high-end product portfolio through the GT 6T and digital series."

Chaurasia continued, "Manufacturers should focus on the feasibility of their business rather than market share, emphasizing providing strong value propositions to consumers. The market is struggling to cope with various challenges, such as fluctuations in mass market demand, slow migration from feature phones to smartphones, and rising adoption rates of second-hand smartphones. Therefore, brands often create demand through holiday promotions. Although consumers purchase devices at higher prices, intense competition in different price segments for market share makes it difficult to maintain profit margins. In addition, frequent discounting during holiday periods raises consumer expectations of price cuts, dilutes brand value, and compresses profit margins. Brands must prioritize product innovation, ecosystem development, and personalized experiences to ensure sustained shipment growth throughout the year and build a sustainable business model beyond seasonal demand and large discounts."

Chaurasia said, "Although the upgrade of 5G devices will continue to drive growth in 2024, manufacturers will increasingly focus on the 'brand experience' of products and channels to obtain long-term returns." Canalys' latest consumer research shows that 44% of consumers expect to purchase devices in the next 12 months, with the vast majority being 'upgraders' who focus on the latest innovations including 5G technology. Canalys expects overall shipments to achieve mid-single-digit growth in the upcoming holiday season. Young Indian consumers show a high degree of openness to new brands and innovation drivers such as generative AI. In the long run, brands should prioritize enhancing device experiences through generative AI functions, ecosystem integration, and innovative appearances to capture consumer interest. It is worth noting that providing this brand experience through retail stores will be key to building brand competitiveness."