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The UPI payment market in India reveals distinct regional preferences and app penetration. In North India, PhonePe and Paytm dominate due to their early entry, established trust, and diverse service offerings. Conversely, Google Pay finds greater success in South India, particularly among the techsavvy urban population. BharatPe has limited consumer uptake in both regions, as per the report "Payment Gateway and Ride-Sharing Platforms: A Comparative Study of Consumer Behaviour & User Preferences between North and South India" by LS Digital and Langoor. 

North India:

• Preference for established platforms like Paytm and PhonePe, which are integral to daily financial transactions.
• Trust and service variety are crucial, making Paytm a go-to for peer-to-peer and business transactions.
• A comprehensive app ecosystem—including bill payments, mobile recharges, and ticket bookings—enhances user retention.

South India:

• Strong inclination towards Google Pay, driven by user-friendly interfaces and a seamless digital experience.
• Multilingual support is valued, aiding platforms like PhonePe in reaching non-English-speaking users.
• Paytm has a comparatively weaker presence in this region.

Overall, while both regions value convenience, security, and cashback rewards, cultural and economic nuances lead to distinct consumer behaviors. North India favors established platforms with integrated services, while South India leans towards tech-driven solutions with intuitive interfaces and multi-language support.

Customer preferences

Tech-Driven Efficiency Seekers (70%): Efficiency and innovation in financial tools drive their choices. They avidly adopt digital payments and fintech solutions to optimize spending and saving.

Cautious Security Enthusiasts (22%): Security and cautiousness guide this segment's gradual adoption of digital transactions. They prioritize traditional methods while considering safe cashless options.

Flexible Financial Innovators Size (6%): Seeking flexibility and control, they favor platforms offering quick access to funds. This segment heavily leans on cashless payment solutions for efficiency.

Convenience-Driven Shoppers Size: 3% Convenience and a broad selection are their focal points. They embrace online shopping's seamless experiences and prefer fast, cashless transactions.

4 segments of consumers in the UPI Payments space in India:

Tech-Driven Efficiency Seekers (70%): This includes frequent Digital Payment Users, Entrepreneurs seeking payment solutions, freelancers utilizing digital payment tools.

22% are cautious security enthusiasts which includes Users Hesitant on Cashless Transactions, Security-Minded Digital Users

Intent Barriers

Security and Fraud Risks: Fear of hacking, unauthorized transactions, phishing attacks, and data breaches

Concern over sharing sensitive bank information: Transaction Failures and Delays Issues with failed transactions, Delays in payment processing, Money getting stuck during transfers, Uncertainty about refund timelines.

App Downtime and Connectivity Issues: Concerns about app crashes, Server downtimes, Network dependency, Difficulty in accessing services in areas with poor internet connectivity.

Customer Support Challenges: Lack of responsive customer service, Difficulty in resolving transaction disputes, Inconsistent help options, Language barriers in support systems.

PhonePe

In North India, 32% of research data related to PhonePe focus on its service offerings with products like digital gold, catering to varying consumer needs through innovative financial solutions.

Challenges of Digitization: 20% of research data indicates digitization introduces challenges such as fraud and system reliability, necessitating stronger security measures to maintain consumer trust.

Technological Integration for Efficiency Size (10%): Integration of AI and advanced technologies at PhonePe enhances customer service, reduces costs, and streamlines operations.

Dominance through User Engagement Size: 9% PhonePe's dominance is driven by effective engagement strategies that enhance user growth and retention,
increasing transaction volumes.

In South India, Digital Payment Ecosystem Size: 56% The rapid growth of digital payments in South India, showcases a significant
transition from cash to digital, reflecting a broader trend in financial inclusion.

Consumer Behavior Transformation Size: 17% The evolving consumer landscape in South India, particularly influenced by Gen Z, highlights changing spending patterns and preferences towards personalization and technology.

Regulatory Environment and Challenges Size: 17% The regulatory framework, including market cap restrictions on UPI providers like PhonePe, poses significant challenges to growth and operational strategies in the digital payments sector.

Global Expansion and Integration Size: 11% PhonePe's movement towards international acceptance through UPI Global positioning exemplifies a drive
towards a more interconnected digital economy, enhancing user accessibility.

Google Pay 

North - Digital Payment Dominance Size (21%): Google Pay's prominence in UPI transactions underscores its pivotal role in enabling cashless exchanges amidst evolving market competition in the digital payment landscape.

Infrastructural Support for Digital Economy Size (21%): Government initiatives and smartphone proliferation are crucial in developing a digital infrastructure conducive to platforms like Google Pay.

Technological Advancements and Future Outlook Size (21%): Emerging technologies like AI and blockchain are reimagining digital transactions, promising enhanced efficiency and engagement.

Fintech Evolution and Innovation Size (14%): The proliferation of fintech solutions is revolutionizing digital transactions with novel features, advancing the cashlless economy's growth in North India.

South - Promoting a Cashless Economy Size (25%) India's shift towards a cashless economy manifests in high user engagement with UPI and wallets, driven by a need for seamless transaction processes.

Technological Integration in Payments (25%); AI and machine learning are revolutionizing payment systems, offering intuitive and efficient financial
solutions that cater to evolving consumer expectations.

Digital Financial Inclusion (17%): Google Pay is advancing financial accessibility by prioritizing diverse consumer needs and forming strategic partnerships to broaden financial product offerings.

Accessibility through Local Partnerships (11%): Cellecor enhances accessibility through strategic retail alliances, prioritizing customer experience and
interactivity with innovative technology..

Paytm

North - Financial Inclusion Through Digital Payments 38% : Catalyzed by government initiatives and smartphone proliferation, digital payments enhance facilitating a transition from cash-based practices.

Evolution and Security of Digital Wallets: 25% Integral to cashless economies, digital wallets evolve with enhanced features and security measures, fostering consumer trust and sustained adoption amid increasing online activities.

Real-Time Transaction Demand 12%: Consumers' preference for instantaneous financial exchanges fuels the adoption and advancement of real-time payment systems, driven by increased mobile technology and ecommerce expansion.

QR Code Payment Innovation 12%: QR code payments integrate traditional and digital transaction systems innovatively, promoting efficiency and
ease-of-use, notably inspired by successful global models like China.

South India: Localized Digital Wallets Size: 50% Paytm serves as a critical digital payment solution in South India, fostering financial integration with
culturally relevant e-wallet services that drive adoption and enhance financial literacy.

User Experience Challenges (22%): Persistent discussions reveal user challenges with Paytm’s technical reliability and navigation, emphasizing the need for seamless app experiences and robust customer support.

Affordability and Accessibility Size (11%) -The South Indian market demands affordability and easy access, influencing Paytm's strategic focus on delivering cost-effective and widely accessible services for value-conscious consumers.

Competitive Landscape and Market Positioning Size: 11% South Indian users engage in comparative assessments of Paytm’s competitive strategy, examining its
reliability and service offerings amidst a crowded digital marketplace.

WhatsApp Pay

User Experience and Technology Adoption Size: 29% The interaction of consumers with WhatsApp Pay reflects broader trends in technology adoption. User
experience is paramount; ease of use and integration with daily routines.

Integration of Unified Payments Interface (UPI) with Apps Size: 27% WhatsApp Pay symbolizes this shift, facilitating quick and user-friendly payment options that are becoming essential in everyday consumer interactions.

Financial Inclusion and Access Size: 24% WhatsApp Pay enhances financial inclusion efforts in North India, providing previously underserved segments with a gateway to digital finance. This trend highlights the potential for both economic empowerment and societal advancement.

Cyber Fraud Risks in Digital Transactions Size:10% Consumers in North India are increasingly aware of the rising risks associated with digital financial transactions, particularly through platforms like WhatsApp Pay.

Digital Integration in Financial Services (60%): The Indian financial landscape is integrating digital solutions to enhance customer and stakeholder engagements, with AI and UPI leading the transformation.

Regulatory and Compliance Challenges (17%): With the fast-paced evolution of digital payments, navigating regulatory complexities remains a priority to
ensure consumer trust and competitive fairness.

Rise of WhatsApp Pay in the Financial Sector Size: 10%

WhatsApp Pay is leveraging its expansive user base and integration with banking services to redefine payment landscapes in India.

Consumer Sentiment towards Digital Payment Solutions (10%):

User adoption of digital payments like WhatsApp Pay is influenced by convenience, despite ongoing privacy and security concerns.

Regional divide: Paytm and PhonePe dominate North India, Google Pay leads in the South

Gaming is a huge hit with Gen Z, with nearly two-thirds (62%) saying it's their go-to leisure activity and 57% feeling inspired to book a trip based on a location featured in a video game. Indian gamers can't resist the allure of their consoles, even on vacation as 67% admit to packing their gaming gear to get their fix on the go, as per Skyscanner's report on travel trends.

88 percent Indian travellers are inspired to book a trip abroad based on locations from their favourite video game.

Skyscanner’s data shows a rise in flight searches to worldwide gaming conventions:

GamesCom, Cologne, 20 August 2024: 508% increase in searches to Cologne in August 2024 vs previous month.

TwitchCon, San Diego, 20-22 September 2024: 167% increase in searches to San Diego in September 2024 vs previous month.

In June 2024, there was a 10% YoY increase in bookings of hotels with games consoles, as per the report.

The most popular hotel destinations where travellers have selected the ‘games console’ filter during this period on Skyscanner are:
Sydney, Australia
Da Nang, Vietnam
Bali, Indonesia
Chicago, USA
Bangkok, Thailand

“In 2023 we saw more than 1.9 million total attendances across the Play! Pokémon Programme and fans travelled from over 50 different countries and regions to compete or spectate," says Pete Murphy The Pokémon Company International.

Ahead of the Pokémon World Championships in Hawaii from 16-18 August 2024, Pokemon witnessed saw a 152% increase in searches during the week of the championships compared to the previous week – showing how much gamers want to connect and play in real life.

Once a predominantly male industry, gaming is slowly morphing into a more inclusive industry, with some countries, according to Skyscanner's data, such as the United Kingdom, having 47% of gamers identifying as women.

"And although only 5% of that make it to the pro scene, this is changing with more and more tournaments being tailored for women gamers in recent years such as the upcoming Women’s Esports Finals, which will be a first of its kind event created by Guild Esports & Sky Broadband," as per the report.

Gaming destinations inspire 57% of Indian travellers: Skyscanner

As per the PwC India report titled, “The Indian Payments Handbook – 2024-29”, credit cards have witnessed a formidable growth in FY 2023-24 with the industry adding more than 16 million new credit cards, crossing the well-anticipated milestone of 100 million cards in force.

Discussing the future of digital payments in India, Mihir Gandhi, Partner & Payments Transformation Leader, PwC India, said, “Over the next five years, the payments industry will prioritise expanding ecosystems and exploring new use cases for existing platforms. Key growth drivers will include embedded finance, ecosystem finance, digital lending based on payment data, and offline payments. In India's dynamic payments landscape, innovation, interoperability, higher security measures and financial inclusion are shaping the path towards a more seamless digital economy.”

With the addition of new cards, the industry has also seen 22% and 28% surge in transactional volume and value respectively. Debit cards have seen a dip in both transactions volume and value owing to the shift in preferences by cardholders. Credit cards are expected to reach 200 million by FY 2028-29. Newer feature innovations, product propositions and customer segments are expected to contribute towards this growth.

Business credit cards

About 40% of Indian MSME and SME segments comprise businesses with a turnover of less than Rs 10 lakhs, employ 1 to 100 employees and less than one-third of these businesses market and sell products online. These numbers, apart from providing the structure of the market, also provide an important insight into the business segment which tells us that these businesses are cash-strapped, require low- or interest-free credit, smooth
vetting/credit approval process and would keep security and protection from payment frauds at the helm of the overall operations.

Unlike corporates, MSMEs/SMEs must manage their financials, keeping working capital as the primary focus while making business payments. To do this, small businesses, especially managed by sole proprietors, reach for their current or personal accounts or personal credit cards strapping their personal finances for the business use, which can cause setbacks. Most importantly, the reconciliation of business expenses for payables becomes
tedious and may create reconciliation/settlement losses and personal credit cards does not provide any business related rewards which can be used to redeem for any business expenses.

Commercial cards 

These can be beneficial for small businesses. With the top issuers entering this segment in the Indian market, the requirement for these cards has also increased. To mitigate the issue of working capital, commercial and business credit cards provide small businesses the freedom of providing interest-free loans for 45 to 55 days. Some business credit cards in India provide account payable and receivables tracking through partnerships with SaaS and BaaS platforms. 

These platforms provide connected finance solutions for the end-to-end tracking of funds, expenditures made by employees and precise financial positions of the business. This allows micro businesses and sole proprietors to separate their personal and business expenses. The global credit card market has seen
small business credit cards grow through the recent years, providing annual percentage rate (APR) benefits, business expenditure rewards and tax
payment solutions.

Adoption of virtual cards

Post the Covid-19 pandemic, the B2B payment landscape has evolved due to an increased adoption of virtual card payments. Virtual cards offer a unique
proposition to businesses, allowing them to offer multiple or single use virtual cards based on the nature of business. Single-use virtual credit cards not
only offer a secure way of doing business wherever third-party transactions are involved but also offer simplified reconciliation. Many Indian delivery startups within grocery and food delivery businesses make use of single-use virtual prepaid cards to avoid reconciliation and transactional issues.

Businesses can integrate virtual cards into their system to simplify accounts payable, corporate travel, payments related to shows/conferences,
healthcare, insurance and fleet management. Virtual card market is expected to grow rapidly especially in the Asia-Pacific region.

16 mn new credit cards added in FY 2023-24, total reaches 100 mn: Report

Skyscanner, has unveiled its latest survey titled, “Destination ‘I Do’”, revealing a desire for destination weddings among Indians, with 85% of them either planning or have already had a destination wedding. Gen Z, in particular, is leading the charge, with 49% considering tying the knot at a stunning wedding destination, compared to 33% of Millennials. This younger generation is drawn to the adventure and uniqueness that such celebrations offer.

Data from the survey reveals that a whopping 66% of respondents in India are totally on board with hosting their own extravagant pre-wedding festivities, mirroring the grandeur associated with Indian weddings. If Indian couples were to indulge in their dream celebrations, 33% would go for a weekend getaway with family and friends, while 32% dream of partying on a cruise with their crew. Meanwhile, 29% envision an Italian-style soiree, and 26% would rock out at gigs with their squad for the ultimate pre-wedding celebration! 

Commenting on the findings, Mohit Joshi, Skyscanner Travel Trends and Destination Expert said, “Destination weddings are sweeping Indian couples off their feet, turning travel dreams into spectacular celebrations! Recent high-profile weddings have inspired more Indians to mark their wedding milestones with memorable celebrations such as destination weddings. Our research found that couples are prioritising unique experiences and are willing to invest more to create celebrations that truly reflect their aspirations. But it’s not just about splurging—they’re thoughtfully planning every detail, balancing grand gestures with savvy choices.”

Defining the Ideal ‘I Do’ Destination for Indian couples

 Asia was the top choice for a destination wedding among Indians: 48% of respondents in India are eyeing Asia for their destination wedding, drawn to the allure of places like Thailand, Japan, and the Maldives. Not only do these locales promise breathtaking backdrops, but they're also closer to home and easier on the wallet. On the other hand, 31% are captivated by Europe's romantic charm, considering destinations like the UK, Spain, France, and Italy.
 

Top picks for Indian couples: When it comes to planning the perfect destination wedding, some of the top destinations respondents are drawn to include Goa, Dubai, Bali, and Bangkok. Goa, with its sun-kissed beaches and lively vibe, offers the perfect mix of chill and thrill for wedding celebrations. Dubai brings the bling with its ultra-glamorous skyline and opulent venues, perfect for couples looking to say ‘I do’ in style. Meanwhile, Bali and Bangkok are all about those dreamy tropical vibes and rich cultural backdrops, giving couples the chance to tie the knot in paradise while soaking up the local charm.
 

Beach Bliss, Royal Palaces, or Scenic Mountains?: When it comes to the vibe of dream destination weddings, 26% of respondents in India envision a romantic beach celebration with sunsets and sand, while 20% are drawn to the opulence of a royal palace affair like in Jaipur or Udaipur. Others envision a soulful, personalised celebration (19%) in scenic spots like Tuscany, Lake Como, or Mussoorie, and the same percentage crave a lavish, glamorous event in vibrant cities like Dubai, New York, or Bahrain. 19% of respondents are also drawn to a picturesque mountain backdrop, imagining a proposal set against the stunning views in spots like Mussoorie, Munnar, or Switzerland.
 
Couples in India go all-out on their destination weddings but remain savvy

 Splurging on wedding dreams: Indians are all set to splurge! With destination weddings becoming increasingly popular, nearly half (45%) of couples in India are willing to boost their budgets by up to 50% for the extra adventure and to make their celebration truly unforgettable, proving that for many a destination wedding is worth every extra penny.
 
According to insights from WeddingWire India, a leading wedding technology platform in India connecting engaged couples with local wedding professionals, 56% of the couples most value the type or style of the venue when searching for their wedding destination. As a result, top-tier destinations like Udaipur, Goa, and Dehradun have become increasingly popular choices, offering couples the perfect blend of bespoke services and stunning settings.

Hidden gems – 83% of respondents in India will swap the usual wedding hotspots of Shimla or Goa for hidden gems like Gokarna or Kalimpong. 
 
WeddingWire India also reveals that other lesser-known destinations like Mahabalipuram in Chennai and Kukas village in Jaipur, Rajasthan, are also becoming increasingly popular for their unique charm and intimate settings, offering couples the chance to create truly one-of-a-kind celebrations.

Planning ahead for the perfect celebration:62% start organising their destination weddings up to 12 months in advance, ensuring every detail isabsolutely perfect. While 40% of respondents in India rely on wedding planners for expert guidance, proving that pros are still the go-to for planning a dream destination wedding, 36% trust recommendations from friends and family for that personal touch.

49 percent Gen Z dream of destination wedding, outpacing millennials: Skyscanner

The Godrej Food Trends Report 2024 curated by Godrej Vikhroli Cucina revealed that out of the total 1,945 kgs of waste generated at L’affaire, 94.8 percent (1843.2 Kgs) was recycled, composted, reused, or donated, with the support of Skrap, the sustainability partner. 

Crafted with insights from over 190 hought leaders—including celebrity chefs, influential bloggers, and dedicated nutritionists—the report highlights the trends in sustainable food practices. 

Key Trends for World Environment Day 2024:

Supporting Local Farmers & Producers: Nearly 90 percent of the experts predict a surge in consumer interest in supporting local farmers and producers. This trend emphasizes the need for sustainable and ethically sourced food. As consumers become more aware of the environmental impact of their choices, they seek ways to contribute positively to their communities.
 
Adopting a Climatarian Diet: In 2024, approximately 75 percent of experts believe that people will increasingly adopt a climatarian diet. This dietary shift focuses on foods with a lower carbon footprint, promoting environmental sustainability. By making conscious choices, individuals can reduce their impact on the planet while enjoying delicious and nutritious meals.
 
Sustainable Packaging: The panel expects a strong demand for sustainable, eco-friendly packaging. With 71% of experts emphasizing this trend, it’s clear that consumers are becoming more environmentally conscious. Brands and manufacturers are responding by exploring innovative packaging solutions that minimize waste and promote a circular economy.
 
“World Environment Day serves as a powerful reminder of the impact our choices have on the planet. The trends highlighted in the Godrej Food Trends Report 2024, such as supporting local farmers, adopting a climatarian diet, and prioritizing sustainable packaging, are not just trends but necessary shifts towards a more sustainable future. By embracing these changes, we can make a significant difference in the health of our planet while enjoying a rich and varied culinary experience." says Rushina Munshaw Ghildiyal, Managing Director of a Perfect Bite Consulting and Editor of the annual Godrej Foods Trends Report.

75 percent experts believe that people will increasingly adopt a climatarian diet: Godrej Report

According to recent data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker, India’s traditional PC market (inclusive of desktops, notebooks, and workstations) shipped 3.07 million units in 1Q2024, up 2.6% year-over-year (YoY).

The desktop and workstation categories grew by 10.1 percent YoY and 2.7 percent YoY, respectively, and notebooks declined by 1.7 percent YoY. Even with reduced demand for notebooks, premium notebooks (>US$1,000) grew by a healthy 21 percent YoY.

In 1Q2024, the consumer segment grew by 4.4% YoY due to low volumes in 1Q23 and some demand coming from e-tail channels during Republic Day sales in January. The commercial segment grew by 1.3% YoY on the back of 56.9% YoY growth in the government segment despite a decline in enterprise orders.

“The consumer segment had a third consecutive quarter of YoY growth. However, the demand softened from the high double-digit growth in the previous two quarters to under 5% growth. Vendors focused on clearing inventory, while a few vendors faced shipment delays leading to lower than expected sell-in,” said Bharath Shenoy, Research Manager, IDC India & South Asia.

Top 5 Company Highlights: 1Q24

HP Inc. led the market with a share of 30.1% in 1Q24 as it topped the charts in both commercial and consumer segments with shares of 32.4% and 26.9% respectively. HP continued to lead in both desktop and notebook categories with 28.9% and 30.4% shares respectively. However, its shipments declined by 8.8% YoY due to reduced enterprise orders and consumer shipment delays.

Dell Technologies was a distant second to HP Inc. with a share of 17.5% in 1Q2024. It, however, fared well in both commercial and consumer segments with a growth of 32.1% YoY and 20.7% YoY respectively. Dell had one of its best quarters in the commercial desktop category shipping 155k units, up 54% YoY, helped by government orders.

Acer Group stood third with a share of 15.4%. It did well in the commercial segment in both desktop and notebook categories, growing by 19.9% YoY and 32.0% YoY, respectively. Its consumer segment grew by 51.7% YoY, driven by good momentum in e-tail channels.

Lenovo stood fourth with a share of 15.1% and a decline of 1.3% YoY in 1Q2024. While it was second behind HP in the consumer segment with a share of 13.5%, it stood fourth in the commercial segment with a share of 16.3%. The vendor struggled in the government segment but fared well in the SMB segment, second behind HP with a share of 22%, growing by 9.4% YoY.

Asus held fifth position with a 5.9% share and a YoY decline of 8.3%. It stood second in the consumer notebook category ahead of Lenovo, with a share of 16.5%. The vendor focused on inventory correction in 1Q2024.

Commenting on the outlook, Navkendar Singh, Associate Vice President, Devices Research, IDC Asia/Pacific, said, “The PC Market in India is facing challenges in the commercial segment due to reduced PC procurement from the IT/ITES sector and global accounts which traditionally drive significant volumes. The market is expected to start recovering by the end of 2024 with refresh buying from the enterprise segment. The vendors have also fast-tracked the local assembly of commercial notebooks, which will help in reducing the imports in the next few quarters.”

India’s traditional PC market ships 3.07 million units in Q1 2024; up 2.6 percent YoY

After more than two years of decline, worldwide tablet shipments posted modest year-over-year growth of 0.5 percent in the first quarter of 2024 (1Q24), totaling 30.8 million units, according to preliminary data from the International Data Corporation (IDC) Worldwide Quarterly Personal Computing Device Tracker. The last time the market recorded growth was in the second quarter of 2021, after which shipments began to slow due to saturation. While macroeconomic issues persist, the rebound in shipments this quarter was driven by the start of a refresh cycle though long-term volumes are unlikely to match the surge seen during the pandemic. However, the shift towards premium tablets is a silver lining as consumers seek productivity-oriented devices.

1Q24 Company Highlights

Apple faced a bit of a lull last year due to the poor economy and the absence of new models and declined 8.5 percent year over year. The company has focused on clearing out inventory of older models prior to the expected launch of new models in 2Q24. Apple managed to hold the number 1 position with 9.9 million units shipped in 1Q24.

Samsung ranked second with shipments of 6.7 million units in 1Q24, which was a year-over-year decline of 5.8%. Promotions from competing brands in Europe and Asia/Pacific and the lack of new products held back Samsung's growth. However, the company is focused on improving its user experience by including AI capabilities in its latest products and focusing on premium products to capitalize on this year's replacement cycle.

Huawei retained the third position this quarter with year-over-year growth of 43.6% and shipments of 2.9 million units. The Chinese tech giant likely benefitted from the resurgence of its smartphone business and managed to grow its market share by 2.8 basis points compared to 1Q23.

Lenovo ranked fourth this quarter with year-over-year growth of 13.2%. Like many other vendors, Lenovo has been able to grow its detachable portfolio since the pandemic, with its Tab P series models driving shipments. However, slate tablets still represent nearly 80% of Lenovo's shipments.

Xiaomi retained its spot in the top 5 with impressive growth of 92.6% year over year and shipments reaching 1.8 million units. Outside of China, which is its largest market, Xiaomi grew by triple digits across almost all regions where it ships.

"The tablet market started showing signs of recovery in the first quarter. The real gains will come from the next refresh cycle, followed by growth within commercial segments as more tablets are used in the education sector and the gig economy," said Anuroopa Nataraj, senior research analyst with IDC's Mobility and Consumer Device Trackers. "However, these factors won't suffice as the attrition driven by competition from PCs and smartphones will contribute to a lackluster outlook for the tablet market. That said, there is potential upside driven by AI capabilities similar to what's expected in other device types."

Tablet shipments show signs of recovery; total 30.8 million units

Apple and Samsung dominated the top-10 best-selling smartphones list for Q1 2024, each capturing five positions and leaving no spot for other brands, according to Counterpoint Research’s Global Monthly Handset Model Sales Tracker. This was the first quarter in which the top 10 smartphones were all 5G capable. Besides, the trend towards premiumization was evident, with 7 of the top 10 smartphones being premium (wholesale price at $600 and above).

Apple’s iPhone 15 Pro Max was the best-selling smartphone of Q1 2024. Notably, the Pro Max variant achieved the top position for the first time in Apple’s non-seasonal quarter, reflecting an increasing trend of consumer preference for high-end smartphones. All four iPhone 15 variants and the iPhone 14 were among the top 10 bestsellers. Further, the iPhone 15 line-up secured the top three spots.

The growing popularity of the Apple Pro line-up was evident, as it captured half of Apple’s total sales in Q1 2024, a significant increase from 24% in Q1 2020. The Pro iPhones have become the major revenue drivers for Apple, contributing over 60% of its sales value in Q1 2024. The Pro line-up offers substantial upgrades and significant enhancements over the base models. This strategic move has proven successful, as consumers are willing to pay for premium features. The Pro line-up’s features include an innovative dynamic island interface, more advanced chipsets, ultra-smooth displays, titanium chassis and a telephoto camera. The iPhone 15 Pro Max performed well despite its first price increase since the launch of the Pro series in 2019, indicating a strong consumer desire for the extra features the Pro line offers.

Samsung’s Galaxy S24 series secured two spots in the top 10 for Q1 2024, with its Ultra variant ranking fifth and the base variant coming in ninth. The strong performance of the S24 series can be attributed to Samsung’s early refresh of the series, and its efforts in generative AI (GenAI) technology. The S24 series was the first to reach the market with GenAI features and capabilities, allowing users to create unique content and experience a new level of interaction with their smartphones.

Consumers are holding onto their smartphones for longer periods because upgrades are offering limited differentiation in features. This leads consumers to opt for high-end smartphones to ensure their devices remain technologically relevant for a longer duration. Going forward, we expect the top 10 best-selling smartphones to capture a larger share of total smartphone sales as OEMs are focusing on leaner portfolios with premium features, including GenAI.

Apple and Samsung dominate top-10 best-selling smartphones list for Q1 2024: Report

India’s smartphone shipments in Q1 2024 (January-March) grew 8% YoY in terms of volume and 18% in terms of value, according to the latest research from Counterpoint’s Monthly India Smartphone Tracker. Volume growth was primarily driven by healthy inventory levels and the low base of Q1 2023. Value growth was driven by the ongoing premiumization trend and new launches during the quarter, such as the Samsung Galaxy S24 and OnePlus 12 series. The premium segment (>INR 30,000) reached 20% volume share, its highest ever, and 51% value share of the overall Indian smartphone market in Q1 2024.

Commenting on the market value dynamics, Senior Research Analyst Shilpi Jain said, “During the quarter, India’s smartphone market reached its highest ever Q1 value. The growth was driven by the strengthening trend of premiumization, with consumers upgrading to higher-value smartphones across price tiers. According to Counterpoint’s Consumer Lens survey, more than one-third of mid-tier consumers are willing to upgrade to the premium segment. Factors driving this trend include affordable financing schemes, better value for trade-ins, and bundled schemes, along with the demand for top-tier features such as AI, gaming, and imaging enhancements.

With a one-fourth share, Samsung led the market in terms of value. Also, at ~$425, Samsung’s ASP was its highest ever, driven by its leading position in the >INR 20,000 segment. This can be attributed to a stronger mix of its newly launched Galaxy S24 series due to its features such as GenAI, and the newly revamped A series, along with the increasing popularity of Samsung’s financing schemes. Apple also had a record quarter in India in terms of value, leading the premium segment both in value and volume terms, driven by the latest iPhone 15 series, especially in offline channels.

Commenting on the market dynamics, Research Analyst Shubham Singh said, “The onset of 2024 brought a promising start for OEMs, with better inventory levels allowing them to fill channels with multiple new launches. However, sales were less than expected due to a drop in retail footfalls and a section of consumers cutting down on discretionary spending.

During the quarter, vivo captured the top spot by volume for the first time ever, with a 19% share driven by its 5G leadership and CMF (Color, Material, Finish) positioning, along with strong imaging capabilities. Key OEMs focused on diversifying their channel strategies during the quarter, which led to growth in shipments in offline channels, with inventory building up by the end of the quarter.”

Other key trends

India’s smartphone market is expected to grow in single digits in 2024, driven by strong premiumization, 5G adoption and post-COVID upgrades.
In Q1 2024, India’s 5G smartphone shipments captured their highest ever share of 71%.

MediaTek led India’s smartphone chipset market with 53% share, Qualcomm leads the premium segment with 35% share.

During Q1 2024, the offline share reached 64%, marking the highest quarterly post-COVID figure.

India smartphone market volume up 8 percent YoY; Value up 18 percent YoY

As India gears up for soaring temperatures this summer, consumer durables are poised to witness a significant surge in demand, fueling a robust economy. Forecasts by the India Meteorological Department (IMD) indicate above-normal maximum temperatures from April to June, coupled with heightened heatwave days in various regions across the country, according to eports.

Major players in the fast-moving consumer goods (FMCG) and consumer durables sectors are optimistic about a resurgence in sales following last year's subdued performance due to unseasonal rains. With the mercury rising, essential commodities such as air conditioners, refrigerators, and fans are rapidly disappearing from store shelves, signaling a bustling market landscape.

Leading the charge is Voltas, a prominent consumer durables company, which reported an impressive 30 percent year-on-year revenue growth in Q3FY24, totaling Rs 2,625.72 crore. The surge in revenue is primarily attributed to a substantial increase in air conditioner sales, with over 2 million units sold in FY24 alone, marking a record high for AC sales in India.

Similarly, Blue Star, another key player in the white goods industry, witnessed a remarkable 25% revenue surge during the same period. Anticipating further growth, the company expects a 25% increase in residential AC sales in Q1FY25, the peak season for such purchases.

According to Blue Star's Managing Director, B Thiagarajan, the Indian commercial refrigeration market is poised to double to Rs 10,000 crore within four years. As per CNBC-TV18, he emphasised the crucial role of integrated cold chain infrastructure in driving the growth of commercial refrigeration, underscoring Blue Star's aim to maintain its 35% market share in the segment.

Thiagarajan highlighted the significance of the upcoming summer season for the industry, likening it to Diwali in terms of sales. He further expressed optimism about the current season, citing predictions of harsh weather conditions and robust demand. Dealers have reportedly stocked up well in anticipation of heightened demand.

The government's Production Linked Incentive (PLI) scheme for white goods, initiated in November 2021, has played a pivotal role in boosting domestic manufacturing. With 42 companies selected under the scheme, investments totaling Rs 4,614 crore have been made to enhance AC and LED component manufacturing, significantly increasing domestic value addition for air conditioners.

As the summer unfolds, industry experts anticipate sustained growth in the consumer durables sector, propelled by favorable weather conditions and government incentives, heralding a promising trajectory for the industry in the foreseeable future.

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