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Smartphone shipments grow by 17% in India, Samsung takes the lead : IDC report

IDC India report
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A rare instance had taken place in the last quarter of 2015 and the first quarter of this year. India, often known as the highest growth market for smartphone amidst a global slowdown, had witnessed a decline in smartphone shipments. However, things now seem to get back on track once again. As per IDC India Report, India witnessed a 17 percent growth in smartphone shipments in the second quarter of this year.

Smartphone companies shipped a total of 27.5 million units in India which was 3.7 % increase over the same period last year and 17 % over the last quarter.

Samsung once again emerged as the top company with 25.1 percent market share. It registered 15 percent growth over same period last year and 10.1 percent over the last quarter.

Micromax and Lenovo followed Samsung with 12.9 percent and 7.7 percent market share respectively. Micromax was back on its growth trajectory this quarter after suffering consecutive declines in the last two quarters. It recorded a 19.9 percent growth over the last quarter which was the maximum sequential growth among all companies in top five. Intex conceded its third position to Lenovo in this quarter and slipped to

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Intex conceded its third position to Lenovo in this quarter and slipped to the fourth rank. It also suffered a decline in shipments with 9.8 percent drop over last quarter and 30.1 percent decrease over the same period last year.

The company is reportedly going through internal changes and also facing competition from entry to mid-level Chinese vendors like Oppo, Vivo, and others. Reliance Jio occupied the fifth rank in the list with 12.3 percent growth over last quarter.

However, we can expect Jio to climb the ladder soon due to the huge interest surrounding Jio 4G which it is offering at extremely competitive prices with its Lyf smartphones.

Growth of Chinese vendors in India

What is interesting in IDC report is that global and Indian smartphone shipments saw a decline in shipments year over year. Whereas Chinese vendors showed a 75% growth in shipments over last year. The IDC report says that as many as four Chinese companies crossed 1 million shipments in India this quarter.

“China based vendors’ shipments grew 28 percent over previous quarter of which Lenovo group, Vivo, Xiaomi, OPPO and Gionee were key contributors driving the growth. 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 shipments bandwagon,”

said Karthik J , Senior Market Analyst, Client Devices, IDC India.

Notably, Oppo and Vivo also managed to beat Xaiomi in this quarter according to IDC report in China. Both companies are working towards expanding their offline distribution through retail stores in both India and China. This has led to their rapid growth in the last two quarters.

Coming to offline distribution, this was another highlight of IDC India report. The smartphone sales through online medium saw a decline from 35% in last quarter to 28% in the second quarter. According to Karthik, this was due to a healthy growth of offline channel and focus of online vendors on expanding their footprint in retail channel as well.

The latest FDI norms which limited the amount of discounting on online platforms also contributed to this decline. However, on may expect the share of online sales to rise once again in this quarter due to the impending festive season.

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