Apple widens revenue lead over Samsung in India's smartphone market: Report

Apple has solidified its position as a revenue leader in India's smartphone market, surpassing Samsung in mobile phone revenue despite shipping less than half the number of devices. This remarkable achievement, reported by The Economic Times citing IDC research, is attributed to Apple's record-high average selling prices (ASPs) and strategic market expansion.

Revenue Gap Widens

During the first half of 2024, Apple shipped 4.8 million iPhones in India, generating a staggering $4.56 billion in revenue. In contrast, Samsung shipped nearly double the volume at 9.8 million units but earned only $3.43 billion, trailing Apple by a substantial $1.13 billion. This signifies a widening of the revenue gap compared to 2023, when Apple first surpassed Samsung's mobile phone value share in India with a lead of $362 million.

Samsung's Declining Performance

Samsung's performance in 2024 has been hampered by a 15% year-on-year decline in shipments during the April-June quarter and a drop in ASPs from $380 to $313 in the second quarter.

"Samsung’s decline can be attributed to a significant fall (in April-June) in shipments and ASPs,” explained Navkender Singh, associate vice president at IDC. “It also underperformed in the super-premium $700+ segment, where the newly launched Galaxy S24 struggled compared to the previous quarter [January-March].”

Apple's Value Share Surge

IDC data reveals that Apple's value share in the Indian smartphone market has surged to 25.9% in the first half of 2024, up from 23% in 2023. Conversely, Samsung's share has dropped to 19.4% from 22%. Counterpoint Research, another market analysis firm, presents a slightly different picture, but still acknowledges Apple's significant growth in value share.

Analysts predict continued growth for Apple, with estimated shipments reaching 12.5 million units in India by year-end, up from 9.2 million in 2023. Samsung's shipments are projected to decline to around 20 million units, down from 24.7 million in 2023.

While Samsung remains the top-selling smartphone brand in India by volume, its dominance is facing challenges from both ends of the market. Chinese brands like Xiaomi and Vivo are intensifying competition in the lower-priced, high-volume segments with feature-rich, 5G-enabled budget offerings. Simultaneously, Apple's aggressive marketing, expanding local manufacturing, and premium branding are attracting consumers in the high-end market, capitalising on the growing trend of premiumisation in India.