Xiaomi was the number one vendor in India’s smartphone market with 12.6 million shipments, while Samsung saw the highest fall among the top five vendors, according to data from the International Data Corporation’s (IDC) quarterly Mobile Phone Tracker report. IDC’s data for the third quarter of 2019 showed that India’s smartphone shipments crossed 46.6 million units. This boost was driven thanks to the number of online shopping festivals and deep discounts offered by e-commerce platforms.
“The continued aggression by the online platforms with attractive cashback and buyback offers as well as affordability schemes like No Cost EMIs and financing options were key in taking the share of the online channel to a record high of 45.4 per cent with YoY growth of 28.3 per cent,” Upasana Joshi, Associate Research Manager, Client Devices, IDC India said.
While online channel saw significant growth, offline channels suffered a 2.6 per cent year-on-year decline in this quarter. Offline retailers fell short of the attractive deals compared to online portals, and were still dealing with leftover inventory, notes IDC. Further, consumer footfall was relatively slow at the retail counters through September, compared to the previous years.
The average selling price for the overall smartphone market was $159 or Rs 11,000 plus. Data also showed that phones under $200 (Rs 15,000) still account for 80 per cent of the overall smartphone market. But this segment saw its market share drop by five percentage points on an yearly basis.
Instead, the mid-range segment of $200-$500 (Rs 15,000 to Rs 35,000) gained six percentage points to capture 18.9 per cent of the market share. The fastest growing segment in India was the $300-500 price bracket (Rs 21,000 to Rs 35,000) as shipments doubled. Phones like OnePlus 7, Redmi K20 Pro and vivo V15 Pro saw good traction.
The $200-300 (Rs 15,000 to Rs 21,000) segment was the second fastest growing. Phones which did well in this price point were Galaxy A50, Redmi Note 7 Pro and vivo Z1 Pro. Data also showed that India’s feature phone market continued to decline, though it still accounts for 43 per cent of the total mobile shipments in India. The 4G-enabled feature phones also declined in double digits.
While the third quarter saw record shipments, IDC does not expect this momentum to continue in the next quarter. “We expect the smartphone market to see only mid-to-high single digit yearly growth for the year 2019. This can be attributed to a strong undercurrent of passive consumer sentiment and muted shipments in the last quarter of the year due to a record third quarter when channel stock levels went up,” Navkendar Singh, Research Director, Client Devices & IPDS at IDC India said in a press statement.
Top five Indian smartphone vendors
Xiaomi was the leading vendor with record shipments of 12.6 million units. But its growth was limited to 8.5 per cent on an yearly basis. Xiaomi’s Redmi 7A and Redmi Note 7 Pro were the highest shipped models in the overall smartphone market, according to IDC. The company also made inroads in the $300-500 price segment thanks to its newly introduced Redmi K20 series. The Chinese player leads the online channel with 40 per cent share.
Samsung was number two, but also the only vendor in the top five with an yearly fall of 8.5 per cent. Its shipments stood at 8.8 million units in the quarter, well below Xiaomi. The lag between older Galaxy A series (Galaxy A10, 50) and the refreshed Galaxy As (Galaxy A10s, A50s) just before the Diwali quarter led to this sharp decline. But Samsung’s Galaxy M30s saw strong shipments.
Vivo had a yearly growth of 58.7 per cent thanks to its affordable Y series (Y12, Y91/i) and managed to get the number three position with 7.1 million shipments, which is quite close to number two Samsung. Vivo’s online only Z/U series accounted for more than 20 per cent share in its shipments.
Newcomer Realme is now at fourth position as its shipments grew thanks to its affordable C2 model and the Realme 5 and Realme 3i series. Realme’s online vendor share was at 26.5 per cent in the quarter and its shipments were 6.7 million This also means that number two, three and four smartphone players are closely matched in terms of shipments.
OPPO slipped to the fifth position in the quarter, and its A5s was the fifth-highest shipped model in the overall smartphone market. The brand managed to became the second largest vendor in the fast-growing $300-500 segment because of its Reno 2 series. Oppo’s shipments stood at 5.5 million.
In the premium (US$500+) segment, Apple continued to dominate with a market share of 51.3 per cent. This was due to affordability offers and price drops on previous generation models like the iPhone XR, iPhone 8 and iPhone 7 (128GB), and the new iPhone 11 Pro, iPhone 11 series.