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 dominance in India continues to grow, with IDC saying these vendors saw shipments increase in the quarter. “China based vendors’ shipments grew 28 percent over previous quarter of which Lenovo group, Vivo, Xiaomi, OPPO and Gionee were key contributors driving the growth,” said Karthik J, Senior Market Analyst, Client Devices, IDC India.
He pointed out till now, only Lenovo had seen shipments cross over 1 million units in a quarter. But this quarter three other other Chinese vendors crossed the 1 million shipment mark. “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,” he added, although Xiaomi is not in the list of top five individual smartphone vendors in India.
Interestingly, the quarter also saw a dip in the online share of sales, which dipped to 28 percent compared to 35 percent in the previous quarter. “Healthy growth in the offline channel, online focused vendors expanding their footprint into retail channel followed by stringent norms to restrain excessive discounting on online platform are some of the reasons that could be attributed for online share decline this quarter,” said Karthik.
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 segment, 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.
IDC also says 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.
In terms of individual vendors, Samsung remains on top with 25.1 per cent share, with the new J series driving its sales. Micromax is at number two with 12.9 market share, and a slew of new launches have stemmed its decline, which includes the Canvas 6 and Yu Yunicorn.
Lenovo is number three with 7.7 per cent market share thanks to the Moto G4 plus and Vibe K5 Plus, which drove volume for the vendors. According to IDC, these two phones account for nearly more than one-third of its total shipments.
Intex is now at number four, and saw a 30.1 per cent drop in shipments compared to last year. Reliance Jio comes in at number 5, where the Lyf brand with free Jio services are helping boost sales.