The Strategist

India becomes the second largest smartphone market

10/30/2017 - 14:20

According to the Singaporean analytical agency Canalys, shipments of smartphones in India in the third quarter of 2017 increased by 23% compared to the same period last year and amounted to 40 million units. This event allowed India to bypass the US and become the second largest smartphone market in the world. According to analysts at Canalys, improvement of the Indian network coverage of 4G could probably have an impact on the increase in demand.

75% of the Indian smartphone market is controlled by the five largest suppliers - Samsung, Xiaomi, Vivo, Oppo and Lenovo. The main importers remain Samsung and Xiaomi, which accounted for respectively 9.4 million and 9.2 million sold smartphones, that is, almost half of all devices. Smartphones from Xiaomi showed the strongest growth - the company increased its shipments by 290% compared to the third quarter of last year, while the leader of Samsung increased its indicator by only 30%.

"The growth of Xiaomi is a clear example of how a successful online brand can effectively enter the offline market while maintaining a low overhead," says Canalys’ analyst. "However, Xiaomi focuses on the cheapest smartphones. In the average price range (from $ 230 to $ 310), Xiaomi is not as successful as its rivals Samsung, Oppo and Vivo. Nevertheless, we predict that Xiaomi will continue to intervene in the market, which will allow it to overtake Samsung within a few quarters."

Earlier this year, Apple launched local production in India. This led to the fact that iPhone shipments more than doubled, to 900 thousand units in the third quarter of 2017 compared to the third quarter of 2016, which, however, prevented the company from entering the top five largest suppliers.

The Indian government said it was interested in selling smartphones in the country for less than $ 30. According to the authorities, this would increase the number of sales and online payments.
Analysts say that there will be more than 300 million smartphone owners in India at the end of this year. China outstripped the US as the largest smartphone market back in 2011.