China-based vendors continue to strengthen their
grip in the Indian smartphone market. In the first quarter of 2017, China-based
vendors captured 51.4 per cent share of the smartphone shipments in India,
according to International Data Corporation (IDC).
In
contrast, the share of homegrown vendors dropped to 13.5 per cent in Q1 2017
from 40.5 per cent in Q1 2016.
The
ASP (average selling price) of smartphones has increased from $131 in Q1 2016
to $155 in Q1 2017. Almost two-thirds of the smartphones sold by China-based
vendors are in the price range of $100-200 in India. It has shifted the mass
segment, which used be the less than $100 to $100-$200 in India, contributing
almost half of the smartphone shipments in Q1 2017.
IDC
said 94.5 per cent smartphones shipped in Q1 2017 were 4G-enabled. While home-grown
companies had half of their portfolio in 3G in Q1 2016, China-based vendors
were already bringing a majority of devices in the 4G segment, which benefited
them in leveraging the 4G wave demand in India. For the first time, in the
first of quarter of 2017, a smartphone model from a China-based vendor became
the highest shipped smartphone as the Redmi Note 4 replaced the Samsung Galaxy
J2, which was the top model in Q4 2016.
"Though
homegrown vendors are making attempts to recapture the lost ground with new
launches in the sub-$100 as well as in the mid-range segment. But intense
competition from China-based vendors continues to be a major challenge and is
expected to increase in the coming quarters" said Jaipal Singh, Market
Analyst, Client Devices, IDC India. "Recovery of the homegrown vendor is
necessary for the Indian smartphone market, not only to fill in the vacuum
created over the last few quarters, but also to fuel the feature phone to
smartphone migration," added Singh.
Agencies
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