Samsung continues its dominance in the Indian smartphone market

According to the Counterpoint, Samsung led the shipments across all three categories — handsets, smartphones and feature phones during the second quarter of the year 2107. The company is followed by Itel, Xiaomi, Micromax, Vivo and others respectively in the handset segment. In the smartphone market, Samsung is followed by Xiaomi , Vivo , Oppo , Lenovo and others in the same order. The feature phone segment in the country too is led by Samsung followed by Itel, Micromax, Lava, Intex and others respectively.
The install base for LTE smartphones in India crossed 150 million units and is next to China and USA respectively, as per the latest research from Counterpoint’s Market Monitor service. The numbers are estimated to surpass that of the USA’s in next one year.
In terms of performance during the quarter, smartphone shipments in India grew by modest 4% YoY in Q2 2017. Like China, the top five brands contributed to almost 70% of the total smartphone market. Although local brands grew during the quarter but are still unable to find their place among the top five smartphone players in third successive quarter.
Commenting on the findings, Karn Chauhan, research analyst at Counterpoint Research said, “Local brands did relatively well during the quarter after three quarters of lull but still have a significant task cut out to reclaim the market share back from rivals. Then again, Chinese players such as Oppo, Vivo and Gionee continued to outspend their rivals during the quarter especially riding high on the IPL and Champions Trophy cricket tournaments. These brands also benefitted from a refreshed portfolio in the important Rs 10K-20,000 segment”
Chauhan further added, “Second quarter of the year normally sees an uptick in promotions and advertisement spend by the OEMs due to sporting events like IPL and cricketing events along with new seasons of TV shows. However, this time the promotions were extended both in offline and online channels as brands tried to clear the inventory ahead of GST (Goods and Services Tax) implementation from 1st of July.”
Talking about the impact of GST on shipmemts, Shobhit Srivastava, research analyst at Counterpoint Research further added, “While GST remained the key talking points during the quarter as the growing domestic EMS (Electronics manufacturing services) players were also worried about the impact of GST on local manufacturing as all previous incentives were supposed to subside under new regime. This was later addressed with the implementation of 10% Basic Customs duty on imported mobile phones and certain components by the government.”
“Although, shipments were impacted in anticipation of GST roll-out especially in June, retailers were quite hesitant in adding new stock into the channels during the last month even though there was some assurance from the OEMs to support pre-GST channel inventory clearance. Going forward, we estimate the market to jump back to double-digit growth ahead of a festive season in 2H 2017,” added Srivastava.
Commenting on the top-selling smartphones, associate director Tarun Pathak, noted, “Xiaomi’s comeback can be attributed to strong demand for its sub-Rs 10,000 portfolio, making the Redmi Note 4 the top-selling model in the first half of 2017. This is the first time any brand has been able to topple Samsung which has held the best-seller slot for its models over the last four years due to its enormous reach and scale.
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