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Indian Smartphone Market Recovers, Posts 17% Growth, Says IDC

he Chinese supremacy in India continues to grow, with IDC saying these vendors saw shipments increase in the quarter

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The Indian smartphone market has recovered after declining for two successive quarters by posting a 17.1 per cent growth over the previous quarter, according to the latest number from International Data Corporation (IDC).

However IDC's data says on a yearly basis, the market saw a marginal growth of 3.7 per cent over Q2 of 2015 and that both global and Indian's vendor's saw their shipments fall on a yearly basis.

The Chinese supremacy in India continues to grow, with IDC saying these vendors saw shipments increase in the quarter.

"China based vendors'shipments grew 28 per cent over previous quarter of which Lenovo group, Vivo, Xiaomi, OPPO and Gionee were key contributors driving the growth. Until now, Lenovo was the only China based vendor to ship over a million units in a quarter, while this quarter saw additional three vendors joining the million shipments bandwagon. Xiaomi's Redmi Note 3 was not only the top selling model in online channel but also a star product for the vendor contributing majority of Xiaomi's total shipments in Q2 2016," said Karthik J, Senior Market Analyst, Client Devices, IDC India.

IDC's numbers also show the battle in the smartphone market has shifted to sub-$150 price mark, which is around Rs 10,000.

"Sub $150 segment has been a strong foothold for Indian vendors, which is now facing increased pressure from both global and China based vendors. Aggressive entry of Reliance Jio with shipments of over a half a million 4G devices has captured significant share in sub $50 segment at the expense of other Indian vendor's share," said Jaipal Singh, Market Analyst, Client Devices, IDC India.

In the premium segmenet, Oppo F1 Plus with its 16 megapixel front camera saw strong shipments. Chinese vendors captured now have a one-third share of this segment (above $300). Apple iPhone SE failed to boost market share for the company, with older iPhone 5S still being a hot favourite and driving volumes.

In India, the feature phone market still accounts for more than half of the total Indian mobile phone market. In Q2 2016, over 33.7 million units of feature phones.

"The rate of migration from feature to smartphone has slowed down…Cautious spending behaviour of consumers clubbed with feature phone's continued relevance to the target customer's usage needs, vendors re-calibrating the channel to increase their share and relatively better margins with feature phones are some of the factors which are driving the volumes for feature phones," said Navkendar Singh, Senior Research Manager, Mobile Devices Research, IDC India and South Asia.

Samsung continued to lead the Indian smartphone market with 25.1 per cent share, registering 10.9 per cent sequential growth over previous quarter and 15 per cent growth from the same period last year.

Micromax retained second position with 19.9 per cent growth over the previous quarter. Slew of new launches backed by the new marketing initiatives helped Micromax gain the market share post two consecutive declines in Q2 2016.

Lenovo Group (including Motorola) with 10.3 per cent growth over the last quarter, vendor regained the third position in Indian Smartphone market. Moto G4 plus and Vibe K5 Plus were the key drivers for the growth accounting more than one-third of its total shipments.

Intex slipped to fourth position in Q2 2016 as its shipments dropped 9.8 per cent sequentially and 30.1 per cent over last year.

Reliance Jio maintained its position as the fifth largest smartphone vendor with 12.3 per cent sequential growth in Q2 2016. LYF devices have entered sub $50 segment and bundling introductory offers with Jio services helped it gain strong traction in retail stores.


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