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India's smartphone market witnesses increased shipments during Q2 2018

November 15, 2018
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According to International Data Corporation (IDC), India's smartphone market witnessed the shipment of 42.6 million units during July-September 2018, observing a 9.1 per cent year-on-year (YOY) growth. This was primarily driven by the online channel that prepared for multiple sale events in the run-up to the festive season. Also, ecommerce players offered multiple financing options to drive affordability such as zero or low-cost equated monthly instalments (EMIs), buyback guarantees, and cashback on debit/credit cards.

IDC further pointed out that this was the first time when the smartphone market was at par with the feature phone market, each contributing 50 per cent to the overall mobile phone market.

The feature phone market witnessed the shipment of 43.1 million units July-September 2018, observing a 2.1 per cent YOY growth. Shipments for Jio Phone continued to decline as the vendor focused on clearing existing channel inventory. The 2G/2.5G feature phone market observed a 19.6 per cent quarter on quarter (QoQ) growth after declining for the previous two quarters. This was primarily driven by higher shipments of vendors like Samsung, HMD, and Lava.

As per IDC, the offline segment registered a slower annual growth of 6.6 per cent during the period under consideration. This has been primarily attributed to the impact of ecommerce aggression, high decibel marketing, and exclusive models in the mass segment preferring to choose online over retail. However, the offline channel held the majority share of the Indian smartphone market with around 60 per cent.

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