Millennium Post

Smartphone shipments to India up 17%... led by Chinese invaders

Smartphone market in India posted a 17.1 per cent sequential rise in shipments to 27.5 million units in April-June quarter, with Chinese vendors like Lenovo, Xioami and Vivo driving the growth, research firm IDC said.

The shipments have revived after two successive quarters of decline. Handset makers had shipped 23.5 million units in the first quarter of this year. Shipments were up marginally 3.7 per cent from 26.5 million units in the second quarter of 2015, IDC said in a report on Friday. 

Samsung continued to lead with 25.1 per cent market share followed by Micromax (12.9 per cent), Lenovo Group (7.7 per cent), Intex (7.1 per cent) and Reliance Jio (6.8 per cent). About 33.7 million units of feature phones were shipped in the second quarter this year, up 2.6 per cent over last year.

“Cautious spending behaviour of consumers clubbed with feature phone’s continued relevance to the target customer’s usage needs, vendors re-calibrating the channel to increase their share and relatively better margins with feature phones are some of the factors which are driving the volumes for feature phones,” IDC said.

With the festive season approaching, IDC expects shipments of both smartphone and feature phone to sequentially grow in the third quarter. Smartphone volumes declined for Indian and global vendors year-on-year, while Chinese players like Lenovo, Vivo and Xioami saw a 75 per cent jump in their shipment in the second quarter of 2016.

“China-based vendors’ shipments grew 28 per cent over the previous quarter of which Lenovo group, Vivo, Xiaomi, OPPO and Gionee were key contributors driving the growth,” IDC India Senior Market Analyst (Client Devices) Karthik J said.

Until now, Lenovo was the only China-based vendor to ship over a million units in a quarter, while this quarter saw additional three vendors joining the million shipment bandwagon, he added. 
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