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Indian smartphone market grows by 14% year-on-year; China-based vendors secure 53% market share in 2017, says IDC report

February 13, 2018

According to a report by IDC, Indian smartphone market witnessed a significant 14 per cent annual growth with a total shipment of 124 million units in 2017 whereas China-based vendors recorded a collective market share of 53 per cent in 2017 as compared to 34 per cent in 2016.

According to the report, Indian smartphone market had witnessed a temporary slowdown in 2016 owing to factors such as demonetization and a shortage of smartphone components but in 2017 it was able to resume its double-digit growth.

Further, in 2017, Xiaomi tripled its shipments year-over-year and sold more than 2 million units from its offline channel while replacing Samsung from its leadership position in the quarter ended December 2017. Meanwhile, Samsung has led the market in the overall year. Moreover, the company saw growth of 13 per cent year-over-year during quarter ended December 2017. Vivo and Lenovo (including Motorola) ended up third and fourth respectively where Vivo’s shipments saw a 41 per cent decline from the previous quarter and remained flattish on year-on-year basis. Lenovo-branded shipments declined almost 60 per cent while its Motorola portfolio saw a marginal increase compared to a year ago. However, OPPO maintained its position even as its shipments dropped almost by half as compared to quarter ended September 2017

IDC has stated that the untapped demand in the lower-tier cities remains the key attraction for China-based brands to explore the growth trajectory in India. Their strength in their home market of China and weakening position of local players has helped some of these China-based players to solidify their operations in India.

Meanwhile, Indian feature phone market also witnessed a 17 per cent annual growth after declining for three consecutive years where JioPhone took the leadership position on its maiden quarter in this category. The year 2017 saw a total of 164 million feature phone shipments as compared to 140 million a year ago.

Post the festive season in quarter ended September 2017, the smartphone category saw a sharp decline of 22 per cent quarter-over-quarter in quarter ended December 2017as vendors focused on clearing channel inventory. However, it stacked up well against last year's weak quarter by registering 18 per cent growth as compared to the same quarter of 2016. In quarter ended December 2017, vendors shipped a total of 56 million units making it the highest-ever shipments in a single quarter. The category witnessed a huge 67 per cent year-over-year growth and 33 per cent growth from the previous quarter. Further, IDC expects the Indian smartphone market to continue double-digit growth for next couple of years.

 
 

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