According to a report by Canalys, India has overtaken the US to rank as world’s second largest smartphone market after China. According to the report, this growth is due to high growth in brands like Samsung and Xiaomi. China ranks first and now India ranks second in the smartphone market.
According to the Canalys report, India has shipped 40 million phones in the third quarter of 2017. This resulted in 23% annual growth in the smartphone market beating the US. Samsung shipped almost 9.4 million and Xiaomi shipped around 9.2 million units to India. These numbers overtakes all the other top vendors’ sales together.
The Canalys Research Analyst, Ishan Dutt says, “This growth comes as a relief to the smartphone industry. Doubts about India’s market potential are clearly dispelled by this result. There are close to 100 mobile device brands sold in India, with more vendors arriving every quarter. In addition, India has one of the most complex channel landscapes, but with low barriers to entry. Growth will continue. Low smartphone penetration and the explosion of LTE are the main drivers.”
Even after having a stupendous growth, there still seems to be scope in the Indian smartphone market. Levelling with China might be impossible at this stage, but India still has scope to grow due to the top 5 vendors which include Samsung, Xiaomi, Vivo, Oppo and Lenovo.
Canalys analyst Rushabh Doshi also added, “Xiaomi’s growth is a clear example of how a successful online brand can effectively enter the offline market while maintaining low overheads.”
This growth is due to the rise in the mid-segment price range smartphone (from INR 10,000 to INR 20,000) along with the access to 4g at an affordable price to all the users.
Last year, the market was slow due to sudden change in the economy and demonetization. This year, second quarter was also slow due to the introduction of GST. Now since the economy is back to normal and the GST has been put behind, quarter 3 saw a great growth which resulted in India acquiring the 2nd position in the smartphone market. The reduction in the indirect taxes has added new equity to the market which resulted in the distributors serving outside their home regions. The distribution has now expanded to the inter-state operations.
Article by Sherin.