Wednesday, 03 March, 2021


Xiaomi leads smartphone race in India, Samsung at second place: IDC report

Indian Smartphone Market 2017 Indian Smartphone Market 2017
Kristine Garrett | 15 February, 2018, 03:09

Shipments touched 124 million for the year, registering an annual growth of 14 percent - the highest globally - according to IDC. The current growth numbers make India one of the fastest growing markets amongst the top 20 smartphone markets globally.

The Indian smartphone market resumed its double-digit growth after a temporary slowdown in 2016 caused by factors such as demonetization and a shortage of smartphone components. The domestic market is estimated to post a "double-digit growth for next couple of years" - contrary to what mature smartphone markets like the USA and China are witnessing.

On a quarter-to-quarter (QoQ) basis, Q4 2017 saw a sharp 22 percent fall compared to the Q3 2017 festive quarter. However, the market registered a healthy 18 percent growth compared to last year's weak quarter which was impacted by demonetization. Chinese phonemakers strengthened their hold over the market with a combined share of 53%, up from 34% in 2016.

According to IDC, India is now the world's third largest smartphone market, but it is still the world's biggest feature phone market as well.

About 164 million feature phones were shipped in in 2017, growing more than 17 percent from 140 million a year ago.

Overall, 88 million mobiles were shipped in India during Q4 of 2017 and Samsung was the #1 brand in the overall shipments with 21% market share. The category witnessed a huge 67% year-over-year (YoY) growth and 33% growth from the previous quarter.

In 2017, Xiaomi tripled its shipments year-over-year and sold more than 2 million units from its offline channel while replacing Samsung from its leadership position in the fourth quarter.

In 2017, Samsung led the feature phone segment with 20.5 percent share and China's Transsion Holdings, which includes brands like Infinix, itel, Tecno under its portfolio, followed the lead with 13.7 percent share. As per Cybermedia Research, Xiaomi had 25 percent market share in the fourth quarter of 2017 against 23 percent share of Samsung. However, the company mantained its lead in the overall year (2017). In continuation of its offline expansion through Mi stores and preferred partners, Xiaomi appointed its first product endorser and is now very aggressive in above the line marketing, which helped the brand to gain traction in the offline channel. It also attributes the Chinese company's aggressive pricing as the reason behind its growth. To extend its omni-channel experience, vivo launched its maiden experience centre in India and also participated in Amazon and Flipkart's winter sales this quarter.

During the quarter, Xiaomi secured marker share of 26.8%, closely followed by Samsung with 24.2% share. Lenovo-branded shipments declined nearly 60% while its Motorola portfolio saw a marginal increase compared to a year ago. Lastly, Oppo maintained its position even after the shipments fell by 50%.

In feature phone segment too, Samsung was outsmarted by LYF which emerged as the market leader with 27% market share, followed by Samsung with 14% market share.

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