Samsung stationary in Indian market, Xiaomi, Vivo and others catching up

Guillermo Lane
May 4, 2017

"In addition, the launch of innovatively designed flagships from Samsung, LG, Apple and others sporting bezel-free displays, Gigabit LTE support, AI capabilities and other features will drive the upgrade cycles higher during the year", added Fieldhack. The company, after all, has a strong presence and a reputable brand image in the smartphone market after ranking fourth with 10 percent share in January-March quarter. Smartphones in the mid-range segment also reported nearly 158 percent year-on-year growth during the first quarter of 2017. Vivo and OPPO both focused primarily on offline segments, helping the companies attain market share that Xiaomi misses with their internet-focused marketing strategy. Online-only brands like Xiaomi and Motorola are moving fast into offline markets to widen their reach to the mass market, addressing consumers in tier-2 and tier-3 cities.

Srivastava attributed the increase in ASP to the growing number of users that are upgrading to the high-end specifications offered by brands in the $125 - $310 price segment. The company also led the smartphone market by volume with a market share of 21% in Q1 2017, recording a growth of 1% annually during the quarter.

Xiaomi is likely to face stiffer competition in the second quarter as Lenovo, now ranked fourth in sales, has launched Moto G5 and Moto G5 Plus phones in the Indian market.

"In the next 2-3 years, in line with our plan, we will begin exporting the manufactured phones out of India to Middle East, North Africa and other South Asian markets".

What's even more interesting is that every four out of five mobile phones shipped during this period have been made in India. The report also added that the Goods and Services Tax (GST) is likely to have an impact on domestic manufacturing and if the government wants to further push its Make in India initiative, it will need to add more incentives for manufacturers to make device locally.

Oppo is targeting various price segments like Rs 10,000-15,000 and Rs 20,000-Rs 25,000 to increase sales across the country.

According to new report by market research firm Counterpoint, the selfie trend has worked out for OEMs like Vivo, Gionee, Oppo, Lenovo and Samsung.

Premium segment (Rs 30,000-plus, US$465) grew a healthy 35% YoY. Since this is essentially going to be a selfie-centric smartphone, on the front, the Oppo F3 will sport a dual camera setup.

Samsung's performance in India appeared to be at a standstill in Q1, 2017, despite the fact that the Indian market itself grew by 12% year-on-year. The segment was mainly driven by Samsung, OPPO, Vivo, Lenovo, and Gionee.

Other reports by TheDigitalNewspaper

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