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Note ban virus bites smartphone sales; Q4 figure crashes by 18%

 PTI |  2017-01-24 18:35:58.0  |  New Delhi

Note ban virus bites smartphone sales; Q4 figure crashes by 18%

India's smartphone market saw a 17.8 per cent decline in sales at 28.9 million units during October-December 2016 compared with the previous quarter, research firm Counterpoint said on Tuesday.

However, sales rose by 14.22 per cent from 25.3 million units, when compared with the corresponding three months a year ago.

"In Q4 2016, there were some significant changes in smartphone rankings with Chinese brands contributing to 46 per cent of the total smartphone market. For the first time, no Indian brand figured among the top five smartphone rankings," the report said.

Samsung had a 24 per cent share, followed by Vivo (10 per cent), Xiaomi and Lenovo (9 per cent each) and Oppo (8 per cent) in the fourth quarter of 2016.

Apple captured the 10th spot in the smartphone rankings during the fourth quarter but led the premium segment (above $450) with 62 per cent market share.

"While demonetisation had its impact on the local players, it will be unfair to take credit from Chinese players that continue to expand their presence throughout India, riding on aggressive portfolio strategies and substantial marketing spends," the report said.

Chinese brands captured a combined 46 per cent of the total smartphone shipment in the said quarter, up from 14 per cent a year ago, it added.

The report said the government's move to scrap high- denomination notes and the liquid cash crunch that followed widened the usual seasonal decline (seen in November-December after festive season) from estimated 12 per cent to 19 per cent this year.

A total of 66.5 million mobile phones were shipped in last quarter of 2016 compared to 60.1 million units a year ago.

For 2016, smartphone shipments in India increased by 18 per cent over the previous year, compared to a growth of just three per cent in the global smartphone market.

Samsung had a 25 per cent share, followed by Micromax (11 per cent), Lenovo (9 per cent), Intex (7 per cent) and Reliance Jio (6 per cent) in 2016.

Apple crossed 2.5 million units shipment in 2016, with one-third of its total shipment coming alone from the fourth quarter, driven by seasonality and the launch of iPhone 7.

More than 83 million smartphones in 2016 were 'Made in India' while 3 out of 4 smartphones sold in fourth quarter were manufactured domestically. However, the local value addition remains close to six per cent, the report said.

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