India’s smart TV shipments declined 14% YoY in Q1 2024, according to the latest research from Counterpoint’s IoT Service. The decline was attributed to muted demand from consumers, an increase in the cost of inputs like raw materials, which led to a reduction in offers and promotions, excess inventory build-up at major OEMs, and reduced demand for smaller-screen smart TVs. In addition, the shipments of Chinese brands declined by 30% YoY due to brands such as OnePlus, Haier, and realme. Continuing the trend from 2023, consumers’ preferences for premium TVs and large-screen smart TVs are likely to gain momentum this year as well.
Commenting on the brand trends, Mr. Akash Jatwala, Research Analyst, Counterpoint said, “Samsung became the leading player for the first time. It was followed by LG and Xiaomi. Samsung introduced new mid-range models, besides offering attractive deals on its new Crystal Vision Pro series. India’s smart TV market is slowly moving towards consolidation, with the share of the top five players increasing to 57% in Q1 2024 from 41% in Q1 2023. The preference for leading and well-known brands is increasing, and long-tail players are gradually exiting the market. Among the mid-tier players, Hisense, Panasonic, Westel, Toshiba and Motorola recorded positive YoY growth, as these players are offering QLED TVs, along with 4K resolution and better color vibrance, to provide an improved visual experience in the lower price range.”
Looking at the market dynamics, Ms. Anshika Jain, Senior Research Analyst, Counterpoint said, “The shipments of larger-screen smart TVs (55” and above) increased by 23% YoY in Q1 2024 as consumers are preferring large-screen and premium models with better features to enhance the visual experience for their living rooms. This was the only segment that showed positive growth during the quarter. In addition, the popularity of QLED TVs is increasing, as mid-tier and other long-tail brands are offering more options even with the 43” screen size and in low-end price bands (sub-INR 30,000) to gain a competitive advantage. QLED smart TV shipments increased by 182% YoY in Q1 2024. Apart from QLED, 4K resolution is gaining support and its shipments increased by 10% YoY during Q1 2024. With the increasing availability of 4K content across OTT platforms, including IPL telecasts, the penetration of 4K smart TVs is expected to rise further.”
Another trend that is taking root in the market is on the software side. OEMs are offering guaranteed software updates for newer models, as most of the smart TVs from mid-tier to long-tier brands don’t receive software updates, and OS becomes slow and offers a laggy experience due to lower memory available on the device. Another trend is becoming prevalent on the content side. Along with offering FAST channels, OEMs are offering complimentary subscriptions for leading OTT platforms to differentiate themselves from their competitors.
Overall, the input cost of smart TVs has increased due to high panel prices and increased demand for bigger displays. In 2024, the market is likely to remain muted and witness a decline of 10% YoY thanks to consumer demand remaining stagnant, with the preference for small-screen TVs declining further. The preference for premium products and large-screen TVs will continue to increase. However, with an increase in ASP (average selling price), the overall revenue is likely to remain flat.
Covered By: Mobility India / Counterpoint
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