India’s smartphone market grew 3 percent year-on-year in calendar Q3 2024, with value surging 12 percent to an all-time quarterly high, driven by a “premiumisation” trend
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Samsung, Apple lead India’s rising smartphone ‘premiumisation’ trend
India’s smartphone market grew 3 percent year-on-year in calendar Q3 2024, with value surging 12 percent to an all-time quarterly high, driven by a “premiumisation” trend, according to market researcher Counterpoint’s latest monthly India smartphone tracker.
Early festive season sales and proactive stock filling by original equipment manufacturers (OEMs) helped fuel the volume growth, though the start of festive sales was slower compared to 2023. Samsung led the market in value with a 23 percent share, prioritising its flagship Galaxy S series and integrating artificial intelligence (AI) features into its mid-range models, Counterpoint notes.
Apple followed with a 22 percent value share, bolstered by strong shipments of the iPhone 15 and iPhone 16. The brand’s push into smaller cities and its aspirational image have strengthened its position as the top choice for premium buyers in India. The market shift towards higher-priced smartphones is supported by aggressive EMI offers and trade-ins, reflecting growing consumer investment in premium devices, according to Counterpoint.
Dow Jones index: Nvidia in, Intel out
S&P Dow Jones Indices will make significant changes to the Dow Jones Industrial Average (DJIA) and Dow Jones Utility Average (DJUA), effective before the market opens on November 8 in the US. Nvidia will replace Intel in the blue-chip DJIA, reflecting the stunning rise of the GPU maker on the back of demand for AI accelerators and the historic end of an era for Intel, an American tech icon that’s yet to offer a serious competing product.
This change removes Intel from the index after a 25-year reign. Intel’s latest quarterly earnings results that came out last week led to some investor optimism that the company may yet be able to regain some of the manufacturing edge and the market share it has lost over the years. However, initial projections for Intel’s vaunted AI chip, called Gaudi, show it’s not getting the traction the company had hoped for.
Palantir, after earnings beat, says US AI demand ‘unrelenting’
Meanwhile, Palantir Technologies, the advanced data analytics and AI software company co-founded by Silicon Valley billionaire Peter Thiel, exceeded its fiscal third-quarter revenue expectations, driven by high demand for its AI software in the US, with sales rising 30 percent to $725.5 million. Shares surged.
The company also reported a record net income of $144 million. Palantir raised its 2024 revenue forecast to $2.81 billion. This beat analyst predictions, according to Bloomberg. Palantir’s US commercial business grew 54 percent, while US government sales rose 40 percent, fuelled by defence spending and its AI tools continue to gain traction.
“We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down. This is a US-driven AI revolution that has taken full hold. The world will be divided between AI haves and have-nots,” said Alexander C Karp, co-founder and CEO, in a company press release on the earnings.
Apple iPadOS under EU scrutiny for compliance with competition rules
European Union (EU) antitrust regulators are investigating whether Apple’s iPad OS complies with the region’s new Digital Markets Act (DMA), aimed at curtailing the power of big tech companies, Reuters reported on November 4. The European Commission, the executive arm of the EU tasked with enforcing the rules, said it will assess whether Apple’s measures, outlined in a recent compliance report, meet the DMA’s requirements, according to Reuters.
Important obligations under the DMA include allowing users to set default web browsers of their choice, supporting alternative app stores, and enabling third-party accessories like headphones and smart pens to access iPad features. The Commission will also consider feedback from stakeholders during its review. The DMA, which took effect earlier this year, carries penalties of up to 10 percent of a company’s global revenue for non-compliance.
Vanguard cuts Ola’s valuation to $2 billion
Vanguard has cut its valuation of Indian ride-hailing startup Ola to $2 billion as of August, TechCrunch reported on November 4, citing a regulatory filing. The US asset manager’s fund disclosed a holding in ANI Technologies, Ola’s parent, valued at $14.3 million, down from the $51 million spent to acquire the shares, which implies the latest valuation, according to TechCrunch.
This marks a significant decline from Ola’s $7.3 billion valuation in late 2021. The revision follows previous cuts by Vanguard, including one in August 2023, which pegged Ola’s value at $2.6 billion. Ola, founded by Bhavish Aggarwal in 2010, competes with rivals such as Uber and Rapido in India’s ride-hailing market.
Aggarwal’s other ventures include Ola Electric, which went public earlier this year with a $4.2 billion market cap, and AI startup Krutrim, which raised its first funding round at a valuation of $1 billion, TechCrunch notes.