The smartphone market in India crossed the 30 million unit shipments milestone for the first time ever in a quarter, according to data from research firm International Data Corporation (IDC). IDC says India continues to see double digit growth in the smartphone market with 11 percent year-on-year growth in Q3 2016. While the Indian smartphone market is growing, Chinese players like Lenovo and Xiaomi are making gains in the market. Home-grown player Micromax has seen its shipments fall drastically in the quarter, according to numbers.
The research firm says smartphone shipments clocked 32.3 million units in Q3 2016 with a 17.5 per cent growth over the previous quarter. “This seasonal spike in third quarter of the year can be attributed to the channel preparation for the festive season, mega online sales and early import of smartphones owing to Chinese holidays in October,” said Karthik J, Senior Market Analyst, Client Devices, IDC India in a press statement.
IDC says online share of smartphones increased to 31.6 percent due to strong performance by key online players primarily from China. Lenovo Group lead the online channel followed by Xiaomi. “Lenovo Group accounts for almost one-fourth of total online smartphone shipments driven primarily by Lenovo’s K5 series and Motorola’s G4 series models. Also, Xiaomi’s Redmi Note 3 and newly launched Redmi 3S fuelled the online shipments to a large extent,” adds Karthik.
India also saw an increase in 4G smartphone shipments which grew by 24.8 per cent over previous quarter and the Reliance Jio rollout has boosted 4G smartphone share in India. Seven out of 10 devices shipped were 4G enabled while in online channel, nine out of 10 phones shipped were 4G capable.
In terms of individual vendors, Samusng remains on top with 23 per cent share and saw 8 per cent sequential growth. According to IDC, Samsung had multiple new launches across both offline and online channels, which added to its strong portfolio. IDC notes the budget J2 smartphone remains a strong contributor to the company’s growth.
Lenovo Group is now in second place with 9.6 per cent share of smartphones beating homegrown player Micromax. Lenovo, which includes Motorola, saw 46.1 per cent growth over previous quarter. According to IDC, Motorola’s volume almost doubled q-on-q thanks to the E3 Power and G4 models, while the K5 series accounts for over 40 per cent of Lenovo’s total volume.
Micromax is in third place with 32 per cent decline in smartphone shipments and the Indian player facing tough competition from Chinese players in US $100-150 segment.
Xiaomi is now in the top five list of smartphone vendors, and according to IDC it has grown more than 2.5 times over the same period last year. Reliance Jio remains at number five with a 20.9 per cent growth over previous quarter as LYF branded smartphones saw a sharp demand thanks to the Reliance Jio roll out.