As some affordable smartphones were launched in the recent past, the Indian smartphone market received a positive push. A new report by International Data Corporation (IDC) claims that smartphone shipments in India grew by 19 percent in the second quarter of 2015 following a sluggish first quarter.
The report says that there were 26.5 million smartphone units shipped in the country in the second quarter that resulted an increase of 44 percent from the 18.4 million units for the same quarter last year. Although there was a growth in smartphone shipments, the report notes that the overall Indian mobile phone market shrunk by six percent year-over-year due to less shipments of total mobile phone units. Mobile phone vendors in the market shipped 59.4 million units in the second quarter compared to 63.2 million units in the same quarter last year.
On announcing the shipments result, Kiranjeet Kaur, Research Manager with IDC’s Asia/Pacific Mobile Phone team, said:
“As China started to slow down, most vendors from the country have targeted India as the next big growth market for smartphones. Key to the success of the Chinese vendors has been popular flash sales through online players such as Flipkart, Snapdeal and Amazon. At the same time, they also focused on bringing more 4G phones at affordable US$100-150 price points which is left unattended by Indian and global vendors.”
Samsung continues to be the leader in the Indian smartphone market with capturing 23 percent market share in the second quarter. However, IDC notes that the Korean giant is experiencing a quarter-over-quarter decline due to less sales of its flagship Galaxy S6 and Galaxy S6 edge. This would be the reason that the company formally discontinued to the high-end version of the Galaxy S6 and Galaxy S6 edge in the market, and recently slashed their prices.
Indian smartphone vendor Micromax came back to the second position with resulting 60 percent quarter-over-quarter growth in the second quarter. The company captured 17 percent share that derived mainly from its affordable Canvas series smartphones as well as Yu Yureka, Yu Yuphoria and Yu Yureka Plus.
Intex, another home-bred smartphone vendor, came to the third position with capturing 11 percent market share in the second quarter.
Lava International, which recently partnered with Google for its Android One initiative, remained the top five players in the Indian smartphone market. The company has Xolo as its sub-brand to capture the mid-range market, and recently announced its plans to start local manufacturing of its devices in the country to expand its overall market share.
Chinese smartphone vendor Lenovo, which owns Motorola Mobility, captured six percent of the total market in the second quarter with its range of affordable smartphones. The company is, surprisingly, the only Chinese smartphone vendor that made to the top five list. However, it has been facing a tough competition from Xiaomi and Huawei.
That being said, the Indian smartphone market is expected to maintain a double-digit growth rate over the next few years as more people will switch to smartphones from features phones and telcos would soon start offering their 4G LTE connectivity across the country to improve user experience.
IDC expects India to overtake the US to be the second largest smartphone market globally after China by 2017. However, there would still be some differences in the Indian and Chinese smartphone markets due to diverse consumer buying behaviour and distinguished purchasing power of both the countries.