Apple has widened its lead over Samsung in India’s mobile phone market, even though it ships less than half the number of devices compared to its South Korean rival. The US tech giant achieved this feat through record-high average selling prices (ASPs) and strategic market expansion, reported The Economic Times, citing research from IDC.
In the first half of 2024, Apple shipped 4.8 million iPhones in India, generating $4.56 billion in revenue. In contrast, Samsung shipped nearly double the volume at 9.8 million units but earned $3.43 billion, trailing Apple by $1.13 billion in revenue. This marks a significant widening of the revenue gap compared to 2023 when Apple surpassed Samsung’s mobile phone value share in India for the first time, with a lead of just $362 million.
In 2023, Apple’s revenue in India reached $8.69 billion from 9.2 million units, while Samsung earned $8.33 billion. The gap has since widened as Samsung’s performance in 2024 has been hampered by a 15 per cent year-on-year decline in shipments for the April-June quarter and a drop in ASPs from $380 to $313 in the second quarter of 2024.
“Samsung’s decline can be attributed to a significant fall (in April-June) in shipments and ASPs,” said 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].”
Despite Samsung’s claims of maintaining or growing its value share in the Indian market, IDC data shows a different picture. In the first half of 2024, Apple’s value share stood at 25.9 per cent, up from 23 per cent in 2023, while Samsung’s share fell to 19.4 per cent from 22 per cent. Counterpoint Research, however, presented a slightly different view, placing Samsung’s value share at 24.5 per cent for the April-June period compared to Apple’s 18 per cent.
Analysts predict that Apple will end the year with approximately 12.5 million shipments in India, up from 9.2 million in 2023. Samsung’s shipments are expected to decline to around 20 million units, down from 24.7 million in 2023. This trend suggests that Apple’s revenue will continue to grow, bolstered by ASPs that are likely to remain more than three times higher than Samsung’s. Samsung’s financial performance will heavily depend on the upcoming festive season.
For FY23, Samsung India reported revenue of Rs 98,924 crore, with mobile phones contributing Rs 70,292 crore, as per data from the Registrar of Companies. In comparison, Apple India’s revenue for the same period was Rs 49,321 crore, with 94.6 per cent coming from product sales, mainly iPhones.
While Samsung remained the top-selling smartphone brand in India by volume in 2023, its dominance has been eroded in recent quarters. The company faces growing competition in the lower-priced, high-volume segments from Chinese brands like Xiaomi and Vivo, which are enhancing their budget portfolios with 5G support. Simultaneously, Samsung is challenged in the high-end market by Apple’s aggressive marketing and expanding local manufacturing, which caters to the growing trend of premiumisation in India.
In the June quarter, Apple dominated both the $600-800 premium segment and the $800-plus super-premium segment, capturing 61 per cent and 83 per cent of shipments, respectively. In comparison, Samsung held a market share of 21 per cent and 16 per cent in these segments, according to IDC.
Despite a 53.6 per cent surge in revenue over the past five years, driven by increasing ASPs from $176 in 2019 to $338 in 2023, Samsung has witnessed a 20 per cent decline in shipment volumes during the same period.
First Published: Sep 17 2024 | 11:40 AM IST