Smartphone shipments in India grew by 15 percent in Q1 2017

04 May, 2017, 00:58 | Author: Delbert Rhodes

In a stark contrast to the previous year, global smartphone shipments have grown 11 per cent in first quarter of 2017, logging 375 million units, a new report said on Wednesday. The top five brands contributed to nearly 70% of the total smartphone market.

The research firm's findings show that no India-based companies made it into the top five positions for market share.

India's smartphone market is witnessing a focus shift in distribution strategy by major brands. Also, this F3 smartphone is Oppo's answer to the Vivo's ideal selfie smartphones like the Vivo V5s and the Vivo V5 Plus, etc.

Vivo experienced a 36% growth in shipments, shipping just under 3 million units in the first quarter. In fact, IDC's latest report says Oppo and vivo's growth outpaced the market.

He added that online-only brands like Xiaomi and Motorola are moving fast into offline markets to widen their reach to the mass market, addressing consumers in tier II and III cities.

"While the Chinese smartphone brands are adopting multiple channel strategies to maximize growth, another Chinese brands iTel is disrupting the other half of the market (feature phones) by climbing to the number two overall mobile phone brand for the first time. iTel, also the number one mobile phone brand in Africa, is now leveraging its successful low-priced strategy, effective distribution and scale to grow in India market".

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Srivastava attributed the increase in ASP to the growing number of users that are upgrading to the high-end specifications offered by brands in the $125 - $310 price segment.

There are also other factors, like phones depending purely in online channels for selling their products plus the effect of the implementation of the GST regime will also have impact on the smartphone market in India.

What's even more interesting is that every four out of five mobile phones shipped during this period have been made in India. The company, after all, has a strong presence and a reputable brand image in the smartphone market after ranking fourth with 10 percent share in January-March quarter.

During the quarter, OPPO, Vivo and Samsung A series smartphones drove the "affordable premium" segment ($300-$399) to make it the fastest growing smartphone segment.

The tactic of the Chinese duo is aimed at overtaking market leader Samsung in the next one year in the Rs 6,000-20,000 smartphone segment, which accounts for 78% of the market. To further tap into these segments, smartphone manufacturers have also been marketing their devices on specific features such as a bigger battery or a better selfie camera. The segment was mainly driven by Samsung, OPPO, Vivo, Lenovo, and Gionee.

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