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Indian smartphone market grows 17% in Q2, Samsung stays ahead

The Indian smartphone market finally recorded a sequential growth of 17.1 percent in shipments for Q2 2016 after declining in the last two quarters.

Published onAugust 19, 2016

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After seeing a decline for two successive quarters, the Indian smartphone market finally recorded a sequential growth of 17.1% in shipments for the April-June quarter, thanks to aggressive device launches and updates by market leaders.

According to IDC’s “Quarterly Mobile Phone Tracker,” India’s smartphone shipments for Q2 2016 stood at 27.5 million, up from 23.5 million in Q1 2016. In comparison to Q2 2015, shipments grew marginally by 3.7%, as both global and Indian vendors saw a decline in shipments.

There was good news for Chinese players, as their shipments grew by 28% sequentially, driven by vendors like Vivo, Xiaomi, Lenovo, OPPO, and Gionee. In comparison to Q2 2015, shipments of China-based vendors, including Lenovo, vivo, and Xioami increased by a huge 75% in Q2 2016.

China’s dominance in the India smartphone market is now even more apparent, with three Chinese vendors crossing the 1 million shipment mark in the quarter, a feat that was earlier achieved only by Lenovo. However, Samsung maintained its leadership position with a share of 25.1%, followed by Micromax at No. 2 with a share of 12.9%, and Lenovo at 7.7%.


IDC’s report also offered some interesting insights into the behavior of Indian smartphone buyers. For instance, there was an increase of 2.6% Y-o-Y in sales of feature phones in the market to 33.7 million units.  Also, the share of  online sales declined to 28% in Q2 2016 from 35% in Q1 2016, as more online-focused vendors expanded their retail footprint.

The battle in the Indian smartphone market has now shifted to the sub-Rs 10,000 (~$150 price) category, which has always been dominated by local vendors, who are now facing increasing pressure from global and Chinese players. Even in the Rs 20,000 plus (above $300) premium segment, Chinese vendors have grabbed a one-third share of the market.

IDC expects the approaching festive season in India to drive a sequential growth in shipments of both smartphones and feature phones for the third quarter.

Which device are you planning to buy during the festive season? Let us know in the comments below!

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