Apple widens lead over Samsung in India; on track to ship 12 million iPhones this year

iPhone 16 and 16 Pro series Mumbai PTI

iPhone maker Apple expanded its value market share in India in the September quarter, staying way ahead of its biggest rival Samsung, which yet again failed to stem the fall with its numbers taking a hit yet again.

According to market intelligence firm International Data Corporation (IDC), Apple led with a 28.7 percent value share in the September quarter. Samsung declined to 15.2 percent from 22.5 percent in the March quarter.

"In terms of sell-in units, this is the third consecutive quarter of shipment decline for Samsung, while Apple has only grown consistently in past many quarters now… growth in Apple shipments increased despite of much higher price points compared to Samsung is the key reason for the value share to increase drastically," Upasana Joshi, research manager for channel research at IDC India told Moneycontrol.

In the January-September period, Apple's total shipment in India crossed 9 million, a 35 percent growth from the year-ago period.

With a promising October-December quarter and new demand for the latest iPhone 16 series, Apple's shipments in 2024 look upwards of 12 million, compared to 9 million in 2023, IDC analysts said.

Despite its high prices, Apple continues to hold high aspirational value. "Though it will be tricky for Apple to grow beyond a certain base with such high ASPs, especially for the price-conscious India market, the affordability drive will ensure a steady upward growth trend in 2025 as well for iPhones," Joshi said, talking about the average selling price.

The average selling price (ASP) is a key indicator of pricing trends, market positioning, and consumer preferences within the smartphone industry. If a company makes cheaper phones, its ASPs would be lower compared to companies such as Apple and Samsung which make premium and pricier phones.

Apple, which had its biggest quarter of volume shipments, with 4 million units, led by iPhone 15 and 13, also emerged as the second largest player in the online channel. iPhone 15 and 13 were the devices that were shipped the most during the September quarter.

Apple was the sixth largest brand in India, with an 8.6 percent volume market share and 58.5 percent year-on-year growth.

In contrast, Samsung's volume market share declined from 16.2 percent last year to 12.3 percent in the September quarter, with shipments declining 20 percent.

For Apple, the discounted previous-generation models consistently performed better, especially during festival sales, ensuring affordability even at the premium end of the market.

No-cost EMIs, upfront channel discounts, bank offers, exchange benefits, etc, seem sufficient for a consumer to own an iPhone.

Data exclusively available to Moneycontrol shows that Apple's ASP was over $950, whereas Samsung's remained between $320 and $350. While 85-90 percent of Samsung's shipments are in the below $700 segment, Apple's shipments are above $700.

Faisal Kawoosa, chief analyst at TechArc, said iPhone buyers show strong brand loyalty, often sticking with Apple even if it means buying an older model.

Samsung faces higher switching rates, as consumers often consider alternatives based on better specs, unique designs or different user interfaces.

"So, while Apple in many ways doesn't have competition and once a consumer decides to buy an iPhone, the probability is very low that the consumer will switch to another brand. For Samsung, that isn't the case. They are competing with several other brands," he added.

Analysts have linked Samsung's market value share decline to several factors, including brand fatigue, inventory challenges, fierce competition from Chinese brands, and difficulties faced by its offline retailers.

Samsung is reducing its workforce in its Indian division after a disappointing sales performance, which has resulted in a significant drop in both the company’s value and volume market shares, reaching their lowest levels in a decade.

READ MORE: Samsung to layoff employees amid falling sales, rising competition in India

They said the company has been losing ground not only because of aggressive strategies by Chinese brands such as Vivo and Oppo and their sub-brands but also because of conflicts with offline retailers and the departure of key sales and marketing executives since the beginning of the year.

Consumers increasingly prioritise CMF (colour, material, and finish) when choosing smartphones and Samsung has glossed over this aspect in budget-friendly models where the Chinese brands have excelled.

"Samsung's mid-range A series offers limited differentiation from its M series and lacks the fast-charging capabilities that competitors provide. This makes it harder for Samsung to retain potential customers," Kawoosa said.

He also attributed Samsung's decline in value and volume market share to factory disruptions and challenges in the offline retail channel, which temporarily impacted the South Korean giant’s sales and further contributed to its struggle against competitors.

The latest report from International Data Corporation (IDC) also showed that Xiaomi has dropped to fifth place in the Indian smartphone market, a major decline from its top spot for many years. Xiaomi's overall market share remains almost the same as last year, at 11.4 percent, with shipments growing by just 2.7 percent. However, it once held over 25 percent of the market.

Vivo maintained its leadership in the market with a 15.8 per cent share, while Oppo was the biggest gainer, cornering the second spot with a 13.9 per cent share. Realme was the fourth largest brand with 11.5 percent share.