Smartphone sales in the June quarter; impact on rigid box sales

According to Canalys, the Indian smartphone market maintained a strong performance in Q1 2024, reaching 35.3-million units. Vendors entered 2024 with improved inventory. The market saw a 15% year-on-year growth, owing to the lower base of Q1 2023, which faced inflationary pressures, weak demand, and stockpile issues. 

Samsung maintained a top spot in Q1 2024 with a 19% share and 6.7 million units shipped. Xiaomi secured the second spot, shipping 6.4 million units, driven by its ongoing mass-market 5G strategy. Vivo claimed the third position with 6.2 million units shipped. Oppo (excluding OnePlus) and Realme completed the top five with shipments of 3.7 million and 3.4 million units, respectively.

According to Counterpoint Research, there might be a 3 to 5% deficit in shipments in the June quarter, because smartphone brands will want to clear out existing stock before the festive season in the next quarter. 

Another study conducted by Counterpoint Research in June showed that realme was the most popular smartphone brand among the Indian youth. The respondents of this survey used the words young, modern, and playful to describe the brand. 62% of the respondents think it offers the latest technology, 63% think the products are valued for money and 61% think the design is stylish in the sub-Rs 20,000 segment.

Canalys senior analyst Sanyam Chaurasia said, “While most brands achieved double-digit growth in Q1, brands outside the top 5 continue to challenge the market share of leading players.” He added, “Emphasis on localisation in the Indian smartphone ecosystem has become inevitable. In 2024, growth catalysts seem to be limited to 5G device upgrades and premiumisation, vendors must focus on long-term strategies for sustainability.”

Amid the push for localisation from the government, vendors must focus on restructuring local distribution, leveraging local manufacturing partners and appointing Indian leadership. According to Chaurasia, they also need to enhance user experience and educate consumers for effective device engagement. He said, “Expanding into smaller cities, bolstering mainline retail, and building channel confidence will be crucial.”

Other than smartphones, some uses of rigid boxes include packaging luxury goods, such as high-end cosmetics, perfumes, jewellery, watches, and designer clothing. Also are used for packaging electronic devices, such as tablets, laptops, cameras, and high-end audio equipment, to protect during shipping while creating a premium unboxing experience for customers. 

A section of rigid box experts believe that the increase in the demand for devices compatible with 5G would impact smartphone sales and help overcome the impact of a wary first half of the year. Owing to the phased manner in which the quinquennial general elections were conducted, there were fewer smartphone launches in the second quarter of 2024. Inevitably, this will have impacted the sales of rigid boxes for the devices too.