Surprise! January-March smartphone sales dip 7%

Smartphone sales in India dipped 7 per cent in the first quarter this year to 19.5 million units, impacted by change in duty structure and restricted supplies from China, Cybermedia Research said on Wednesday.  The overall mobile handsets market in the country, including feature phones, declined 15 per cent to 53 million units in the January-March period, compared to the previous three months (October-December 2014). Of the total shipment, 37 per cent (19.5 million) devices were smartphones. Feature phone shipments slipped over 18 per cent quarter-on-quarter in the reported period.

“With major announcements of new handsets and entry of some new brands happening in a big way in Q4, 2014, there wasn’t really something very exciting in the market for customers that could push up sales in Q1, 2015,” CMR Lead Analyst Telecoms Research Faisal Kawoosa said in a statement. Also, change in duty structure and consequent impact on the supply chain due to the Chinese New Year festivities contributed to the market contraction, he added. Korean handset maker Samsung increased its share in the smartphones segment to 27.9 per cent in the first quarter of 2015, up from 23.7 per cent in October-December 2014.

“Samsung’s ability to add to its portfolio in all the major price segments within smartphones by launching new models in each of the entry-level, mid-range and high end segments of the market contributed to this increase,” Kawoosa said. Micromax, at second spot, registered a dip in market share in smartphone segment to 16.2 per cent from 17.8 per cent in the previous quarter.