Indian smartphone OEMs lose significant market share to Chinese counterparts in Q1: IDC

Xiaomi Redmi Note 4 replacing Samsung Galaxy J2 becomes the highest shipped smartphone in Q1, 2017

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Highlights

    • Chinese vendors continue to dominate Indian smartphone market
    • Redmi Note 4 highest shipped smartphone in Q1, 2017
    • Samsung still remains in the top

Chinese smartphone OEMs have yet again secured the position in the Indian smartphone market. According to the research firm International Data Corporation (IDC), Chinese smartphone vendors like Xiaomi, Oppo, Vivo continue to ‘strengthen their grip’ in the Indian smartphone in the first quarter of 2017.

With 27 million smartphones shipped in India in the first quarter, the smartphone market in the country saw a 14.8 percent growth. As per the data from IDC, the China-based vendors captured 51.4 percent share of the smartphone shipments in India with 16.9 percent sequential growth. However, homegrown vendors share dropped to 13.5 percent in Q1, 2017 from 40.5 percent in the Q1, 2016, the report noted.

The reason behind such decline could be attributed to the features not being offered by indigenous smartphone manufacturers. IDC points out that China-based smartphones makers had already upgraded a majority of their phones to support 4G, while the home-grown companies had 50 percent of their portfolio in 3G for the first quarter last year. As per the report, over 94.5 percent of the smartphones shipped in the first quarter of 2017 were 4G enabled. Besides, the camera was another factor that caused a majority of users to opt for Chinese handsets. While almost 5 out of 10 smartphones that shipped in Q1 were equipped with a 13-megapixel rear camera, 62.2 percent of devices having 13-megapixel primary sensor were from the Chinese vendors, IDC said.  Furthermore, the trend of bringing bigger screen phones has resulted in the Chinese players to further dominate the Indian smartphone market. According to IDC, ‘share of less’ than 5-inch display smartphone reduced to 21.2 per cent in Q1, 2017.

Source: IDC
                                                                Source: IDC

Interestingly, Xiaomi’s Redmi Note 4 replaced Samsung’s budget smartphone Galaxy J2 as the highest shipped smartphone for the first time in Q1, 2017.

According to IDC, the direct internet channel captured 4 percent market share in Q1, 2017 compared to the negligible share in Q1 last year. Xiaomi’s online strategy has been the key factor that triggered the Indian consumers buying directly from the vendor’s website.

Over the time, online channel has established itself as a prominent distribution medium in Indian smartphone market with a stable contribution of almost one-third of total shipments for last few quarters. Interestingly, online channel has relatively higher shipments of smartphones with superior features in comparison to the offline channel”, says Karthik J, Senior Market Analyst, Client Devices, IDC

However, when it comes to individual retailers, Samsung still maintains its leadership in the scoreboard. With 21.7 per cent year-on-year growth in shipments, Samsung’s approach of multiple new launches in Q1, 2017 ‘across price brands’ the J2 series, C9, A-series (2017) contributed towards this increment, IDC said. Xiaomi holding the second position saw a sequential growth of 39.8 per cent in Q1, 2017.

Vivo secured the third spot on the podium thanks to a 44.2 percent growth in shipments, allowing it to capture a 10.5 percent market share. Lenovo (including Motorola) tripped down to number four, however, its shipment grew to 33.7 percent over Q1 last year. Oppo, close to Lenovo at number five, saw a sequential growth of 14 per cent in Q1, 2017.