Smartphone market crosses 30 m in Q3

Our Bureau New Delhi | Updated on January 15, 2018 Published on November 15, 2016




Samsung retains No 1 rank despite Note 7 recall

The smartphone market in India crossed the 30 million units shipment milestone for the first time in the third quarter, maintaining its healthy traction with 11 per cent year-on-year (YoY) growth.

According to the International Data Corporation's (IDC) Quarterly Mobile Phone Tracker, smartphone shipments clocked 32.3 million units in the third quarter, recording 17.5 percentage growth over the previous quarter.

“This seasonal spike in the third quarter of the year can be attributed to channel preparation for the festive season, mega online sales and early import of smartphones owing to the Chinese holidays in October," Karthik J, Senior Market Analyst, Client Devices, IDC India, said.

And, inspite of instances of fire and battery bursts in some of its flagship models, Samsung led the Indian smartphone market with a 23 per cent share. It reported 8 per cent sequential growth and 9.7 per cent growth from the same period last year.

Despite the recall of Samsung’s flagship Note 7, multiple new launches across both offline and online channels added to its strong portfolio and helped the vendor grow at a healthy rate in the third quarter, IDC said, adding that the J2 continues to be a key contributor for Samsung.

Lenovo Group (including Motorola) climbed to second place with 9.6 per cent share of smartphones.

Motorola’s volume almost doubled quarter-on-quarter driven by the newly launched E3 Power and G4 models.

The K5 series continues to be a lead runner for Lenovo, accounting for over 40 per cent of its total volume.

However, Micromax slipped to third position with a 32 per cent decline in smartphone shipments over the previous quarter. The vendor is facing pressure from other local vendors in the sub-$100 segment and with Chinese players in the $100-$150 bracket, the IDC report said.

Xiaomi made its debut in the top five as its shipments have doubled over the previous quarter, it said.

Reliance Jio sustained its fifth position in the third quarter despite a healthy 21 per cent growth over that in the previous quarter.

With the commercial launch of Reliance Jio services with an attractive introductory offer, LYF branded smartphones saw sharp demand with reports of stock-outs at some locations. Apart from its entry-level Flame series, the Water series also contributed to growth in the third quarter, it said.

Overall, mobile phone market shipments closed at 72.3 million units in the quarter, recording 18 per cent sequential growth.

Feature phones registered 39.9 million units during the quarter, with a healthy 18.6 per cent quarter-over-quarter growth.

However, the feature phones market declined at 12.4 per cent over the same period last year, pulling down marginally the overall mobile phone shipments by 3.3 per cent.

“The mobile vendor ecosystem is going through a multi-dimensional transition. Continuous investment from China-based vendors on retail expansion and high decibel marketing has led to disruption in the plans of home-grown vendors to some extent," Jaipal Singh, Market Analyst, Client Devices, IDC India, said.

To remain relevant, home-grown vendors are counting on the feature phone market even though they are facing certain supply issues for a few components," he said.

"Also, vendors are re-looking the channel strategy by getting lower tier distributors on-board, positioning more staff at store-fronts and adopting the right mix of products in both the online and offline channels," he added.

The migration from feature phone to smartphones has slowed down, helping India-based vendors to maintain their dominance in the overall mobile market.

Going forward, IDC said it expects the market to end with higher single digit annual growth, considering the smartphone performance till the third quarter.

Published on November 15, 2016

A letter from the Editor

Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!


Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.