“The third quarter of the year started slowly as the sales channels adjusted to the new taxation system but they quickly recovered within a few weeks. The Indian smartphone market is now preparing for the biggest quarter so far; offline channels have already cleared the old stocks, eTailers are getting ready for mega online festivals, and vendors are set to launch new models in the Diwali festive period,” the report read.About 28 million smartphones were shipped to India in Q2 and the industry registered 3.7 per cent quarter-on-quarter growth, according to International Data Corporation’s (IDC) Quarterly Mobile Phone Tracker report. Thanks to Goods and Services Tax (GST), smartphone vendors experienced weak sales in second quarter.
Samsung emerged as the number one smartphone vendor in India in Q2, 2017 with 24 per cent share. The Korean company witnessed a decline of four per cent from the same period of last year thanks to growing competition from Chinese vendors who’ve now started to focus equally on offline segment as well.
Samsung was followed by Xiaomi, which retained its number two position in Q2 as well with 17 per cent share. The Chinese smartphone maker experienced 25 per cent quarter-on-quarter growth. IDC attributes this growth to Xiaomi’s expansion in offline segment such as opening of Mi homes, Mi authorised stores and partnering with the key large format retail stores.
Xiaomi tripled its offline shipments in Q2, added the report. Xiaomi Redmi Note 4 is now the highest shipped smartphone in a single quarter with over two million smartphone units sold in Q2.
Chinese vendors Vivo and Oppo grabbed the third and fourth spot with 13 per cent and eight per cent shares respectively. Thanks to above-the-line marketing activities and promotions, Vivo made a significant jump from four per cent market share in the same period last year to 14 per cent now. Vivo saw 26 per cent quarter-on-quarter growth. Oppo’s shipments declined by 13 per cent quarter-on-quarter.
Lenovo and Motorola together are the fifth largest smartphone vendors in India with seven per cent market share.
Coming to Indian smartphone vendors, they registered 18 per cent quarter-on-quarter growth in Q2, though the market share remains limited to 15 per cent. Chinese smartphone makers, on the other hand, contribute to 54 per cent market share with 9 per cent quarter-on-quarter growth in Q2.
“Indian vendors have shown an early sign of recovery and now when most of them are ready with their 4G product portfolio, a new set of China-based competitors have entered in the sb-US$150 segment” says Upasana Joshi , Senior Analyst, IDC India. “Indian vendors are putting all their efforts and second half of year will be crucial, either it will see a revival of Indian vendors or emergence of new dominance in the sub-$150 segment from China based vendors,” added Joshi.
As per the IDC report, the third quarter is the biggest quarter for feature phones as festive season in India approaches. Reliance Jio JioPhone 4G feature phone, which is expected to hit the shelves in September, will most likely contribute to stabilising feature phone market in the short term.
About 34 million units of feature phones were shipped in Q2, and the segment saw 6.5 per cent quarter-on-quarter growth after declining consecutively for two quarters. “Experience of early adopters will be crucial for the 4G feature phones in the 2G dominated category. Network connectivity, battery performance, and internet enabled multimedia experience will carve the path to the next phase for this category,” said Navkendar Singh , Sr. Research Manager, IDC India.
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