Indians’ growing fondness for smartphones has led to India dislodging the United States to become No.2 smartphone market only after China. Interestingly, Chinese mobile manufacturers are making the most of this spurt in smartphone sales as four companies figure in the list of top five…

NEW DELHI, OCTOBER 31, 2017: India has reached 40 million (4 crore) units of shipment and has now surpassed United States to become second largest smartphone market in the world after China, as per latest report by Singapore-based technology market research firm Canalys.

Indian Smartphone market has recorded 23% growth in shipments of smartphones in Q3 2017. The list of top 5 Indian Smartphone players includes Samsung, Xiaomi, Vivo, Oppo and Lenovo, clearly showing the growing supremacy of Chinese manufacturers in the Indian market.

Samsung tops the list with the shipment of 9.4 million (94 lakh) smartphones in India, a growth of 30% from Q3 last year. Xiaomi, which secured the second position with the shipment of 9.2 million (92 lakh) units, almost increased its sales by a whopping 290%.

According to the report, Chinese smartphone companies holds a big share in the Indian market. Out of the top-5 players, four are Chinese brands, while Indian smartphone manufacturers enjoy just 15% marketshare. The market continues to concentrate, with the top five vendors.

According to Canalys Research Analyst Ishan Dutt: “This growth comes as a relief in smartphone industry. Doubts about India’s market potential are clearly dispelled by this result. There are close to 100 mobile brands sold in India, with more vendors arriving in India 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.”

“Xiaomi’s growth is a clear example of how a successful online brand can effectively enter the offline market while maintaining low overheads. But Xiaomi focuses on the low end. It struggles in the mid-range (devices priced between Rs.15,000 and Rs.20,000, where Samsung, Oppo and Vivo are particularly strong. Nevertheless, we predict Xiaomi’s continued go-to-market innovations will allow it to overtake Samsung within a couple of quarters,” said Canalys Analyst Rushabh Doshi.

Apple has begun its local manufacturing in India this year only and has double its shipment to 9 lakh units in Q3 2017 as compared to Q3 2016. With such a high cost, excitement and curiosity of iPhone X has been built in India. High demand and curiosity in Indian market notwithstanding, Apple has shipped only 9 lakh units. Apple has only 0.225% market share in Indian market.

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