Mumbai: Out of the vast range of smartphone vendors operating in India, Apple and Lenovo have emerged as the top two among the lot, according to a report published by an independent analysis firm, Canalys.
According to the report, India’s smartphone market grew by 12 per cent on a yearly basis, with 24.4 million units imported in Q1 2016. The top five spots were occupied by Samsung, Intex, Lenovo, and Lava. On the other hand, Microsoft, Blackberry, LG, and Sony were the biggest losers as the market shifted towards low-cost handsets.
Over the past 18 months, India’s smart phone market has been rocked by dramatic changes. The rise of online channels, the arrival of new international vendors (particularly from China), the move to LTE and the desire for higher-quality devices have all had a big impact. Indian companies have struggled as incoming vendors have been quicker to address these trends,’ said Ishan Dutt, Research Analyst at Canalys.
“Micromax, in particular, has been through tough times, with key executives leaving. Now the company is aiming to revamp its strategy to incorporate an ecosystem of services around payments and content.’ Micromax’s market share fell by a couple of percentage points to 16.7% in Q1 2016,” the report said.
Lenovo grew the most, all thanks to it’s value-for-money handsets. There shipments were up by 64 per cent in the first quarter of 2015. Though eighth on the list, Apple stood second in terms of growth speed among the top 10, with a 56 per cent increase in shipments.
‘Apple is outperforming the overall market in India, and still has great growth potential,’ said Canalys Mobility Analyst Wilmer Ang.
The research indicated that the iPhone has been giving serious competition to Samsung in the premium segment. “For devices priced over US$300 (INR20,000), Samsung’s market share fell from 66per cent in Q1 2015 to 41 per cent in Q1 2016, while Apple grew its market share from 11 per cent to 29 per cent, “ the report added.
One of the main reasons for Apple’s rising popularity in India, as cited by the report, is the successive price cuts that the iPhone 5s received, albeit the small screen and outdated hardware.
“Apple’s growth run could be short-lived. The 5s’ success in India has more to do with affordability of a premium brand than a preference for smaller phones, and the move to the more expensive SE will discourage budget buyers. Also, the recent government regulation curbing discounts on smart phones sold by online platforms will affect demand,” added Ang.
The research and analysis firm also expected that more vendors will partner with financing establishments to boost overall affordability, ensuring growth in this extremely cost-conscious market.
