Xiaomi and Samsung now Contribute to Almost Half of The Indian Smartphone Market

31-10-2017 My Mobile

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Xiaomi and Samsung now Contribute to Almost Half of The Indian Smartphone Market

Source: https://www.counterpointresearch.com/xiaomi-and-samsung-now-contribute-to-almost-half-of-the-indian-smartphone-market/

(Counterpoint Research News Section)

According to the latest research from Counterpoint’s Market Monitor service, India handset shipments reached an all-time high of over 84 Million for the first time ever driven by strong sell-in of both feature phones and smartphones.

In terms of performance during the quarter, Smartphone shipments in India grew by 18% YoY while featurephone shipments declined by 4% YoY. Bulk of the growth was driven by online channels such as Flipkart’s Big Billion sale and Amazon’s Great Indian festival in September. Offline players also contributed to some of the shipment growth filling the channel ahead of Diwali. As a result, fourth quarter will be crucial for offline players as they need to streamline their inventory levels which they have accumulated ahead of Diwali. We expect discounts and offers to run even post Diwali.

Commenting on the findings, Karn Chauhan, Research Analyst at Counterpoint Research said, “India continues to be an attractive destination for handset OEMs. With strong smartphone growth and a sizeable featurephone market for at least three to four years, OEMs in India can target a diverse set of audiences. This has allowed a number of OEM’s to still realize double digit growth in the featurephone segment in spite of being absent in the smartphone segment.”

Commenting on the competition, Mr. Chauhan further highlighted, “Samsung and Xiaomi together contributed to almost 45% of the smartphone market. This is the first time since 2012, that the top two brands have reached this level of combined share, signaling that key brands are ramping up their presence in India. Additionally, the quarter was marked with return to growth for local handset players such as Micromax and Lava in the smartphone segment.”

Shobhit Srivastava, Research Analyst at Counterpoint Research further added, “It has been almost a year since Reliance Jio launched its 4G LTE network officially, which drove an inflection point for mobile data consumption as well as demand for 4G capable phones. Within a year, Jio attracted more than 100 million subscribers to its network and now is targeting the next 100 million subscribers by bringing the first ever LTE featurephone to the market. This has changed the dynamic of the Indian mobile market where OEMs and operators are partnering to launch affordable 4G bundled offerings. It will all boil down to how attractive the bundled value proposition is, keeping in mind the effectiveness of Total Cost of Ownership.”

Associate Director Tarun Pathak, noted, “Xiaomi continues to post back to back record quarters in India and create new benchmarks. Three out of the top five bestselling smartphones in India were from Xiaomi alone. Xiaomi has been popular in the past for its “value for money offerings”, however, the popularity is now transitioning into performance compared to last year. This can be attributed to a streamlined supply chain effort by Xiaomi and relatively weaker offerings from competitors in the online channel.

Mr. Pathak highlighting on the still important featurephone segment, added, “Samsung continues to dominate the segment in spite of pulling out of the featurephone segment elsewhere, highlighting the importance of catering to the huge base of Indian featurephone users. However, we also witnessed the strong entry of Nokia branded featurephone with Nokia 105 becoming the one of top selling models during the quarter. Entry of the much awaited Jiophone also propelled it to the top five bestselling featurephones.”

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