'Smartphone shipments in India grew 15% in Q1 2017'

Kathleen Mckinney
April 30, 2017

Smartphone manufacturing in India got a boost in the January-March (Q1) quarter of calendar year 2017, with approximately four out of five handsets made in the country, though all the brands were owned by overseas manufacturers.

The report further points at a significant boost in the nation's "Made in India" initiative as nearly four out of five mobile phones shipped were made in India during Q1 2017 which is quite commendable. Xiaomi faced increased pressures from Huawei's Honor sub-brand when it comes to pricing, and from Oppo and Vivo's immovable marketing. "Lenovo moved up a place to fourth, while Oppo fell back to fifth", the report said. The good news for Chinese OEMs is that the top 3 brands, all local ones of course, now account for more than 50% of the shipments in the first quarter of 2017, with Huawei leading the charge, followed by Oppo and Vivo. According to their data, Huawei shipped close to 21 million smartphones which equates to 18% of the market in China.

Yet another positive development was the preference for high-end smartphones, as reflected in the increase in the average selling price. While Samsung did have a significant presence in China in the past, its market share has been falling steadily over the past several quarters.

"Xiaomi's success in India is underscored by its online market strategy. Demonetization seems to have had no impact on it, as its target customer is young, Internet-enabled and primarily buys online".

The IDC Worldwide Quarterly Mobile Phone Tracker also found that the bulk of the growth came from a small number of Chinese manufacturers, including Huawei, OPPO and vivo who are rapidly growing their market share, it says.

Home-bred handset vendor Lava was the first to launch a 4G feature phone. "One year on and all three vendors have dropped out of the top five, with their collective share falling to around 11 percent".

With its Vivo V5 Plus priced at Rs 24,500 and Vivo V5s at Rs 18,990 that were launched previous year gained a lot of traction in the Indian market and has ranked third.

Vivo took the third spot with over 10 percent of total shipments with a growth rate of 36 percent in sequential shipments. Vivo shipped almost 3 million smart phones in the quarter. However, it cautioned that this will also lead to the change in channel strategies, with an emphasis on making distribution models more cost-effective.

Other reports by TheDigitalNewspaper

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