Smartphone shipments in India crossed the 100 million mark in 2015, with 4G shipments outnumbering 3G ones for the first time ever in Q4, says a new report from research firm International Data Corporation (IDC).
IDC’s numbers showed that in 2015 the Indian smartphone market grew at 28.8 per cent to 103.6 million units, positioning itself as one of the fastest growing smartphone markets in Asia Pacific.
The growth in smartphone sales in India is taking place via the e-commerce route, according to the report. “The online share of smartphone shipments continued to ramp further as 2015 Q4 saw online mega sales from major e-tailers like Flipkart, Snapdeal and Amazon. Online share spiked to 37.3 percent in 2015 Q4, growing 2.5 times over the same period last year with almost half of the contribution coming from online exclusive models,” adds Karthik J, Senior Market Analyst, Client Devices.
The report also notes that with China saturated as a market, most vendors including Chinese players are now looking for avenues to leverage on India’s growth potential, and in such a scenario online route helps players scale up quickly without having to “set up a complex distribution network”. Chinese vendor’s smartphone shipment spiked with 71 per cent growth in Q4 in India.
“Good quality, big discounts by e-tailers and higher specification at lower prices are few key factors for which Chinese smartphones are preferred over others especially in US$100-300 price band,” said Jaipal Singh, Market Analyst, Client Devices.
The Make in India campaign has had a serious impact on the local manufacturing of smartphones in India with 1 out of 2 smartphones being locally manufactured. Samsung led with the highest shipments in the locally manufactured segment.
In terms of individual vendor positions, Samsung leads the smartphone market (26.8 per cent market share) thanks to its J–series, and the On5 and On7 models. Micromax is still at number two (14.1 percent share) but its shipments fell 12.1 per cent year-over-year and 23.5 per cent over previous quarter.
Lenovo, including Motorola, is now at the third position (11.6 per cent share), and according to IDC Lenovo saw shipments almost triple year-over-year.
Intex fell to the fourth position, although shipments grew 40.9 per cent in 2015 Q4 over the same period last year.
Lava with a healthy 20 per cent year-on-year growth continued to manage its place in the top five in highly cluttered Indian smartphone market. Lava gained share in the online channel mainly through 4G based shipments from their Xolo series.