Xiaomi Continues to Lead Smartphone Market in India Q1 2018: Research Firms

James Marshall
April 24, 2018

Xiaomi's growth is ahead of Samsung's 26.2 percent market share that Counterpoint reported for the first quarter of 2018.

Canalys, however, said Samsung with 25 percent market share shipped just under 7.5 million smartphones - growing by 24 percent on previous year. Oppo and vivo came third and fourth in India. The above top four vendors accounted for 75% of all smartphone shipments in India, while Xiaomi and Samsung booked 56% of smartphone shipments.

"Xiaomi's smartphones are now available in more places and in larger quantities".

Major changes seem to be happening in the Indian mobile phone business as data from Counterpoint Research indicates that Xiaomi and Reliance Jio have toppled in their respective markets in India.

Xiaomi was the leader with 25 per cent market share in Q4 of 2017. Next in the list was Xiaomi which registered 14% of shipments in the same quarter, up from 3% a year ago, and shipped 4 million units. Huawei's sub-brand Honor captured the fifth position and entered the top 5 for the first time in the smartphone market, all thanks to the performance of Honor 9 Lite as well as Honor 7X across both online and offline channels.

Now Xiaomi is bringing this cost disruption to TVs, "another consumer market that is dominated by heavyweights, such as Samsung, Sony and LG", according to Dutt at Canalys. "Xiaomi's Redmi Note 5 and 5 Pro were the most popular models for the Chinese brand, whereas Samsung Galaxy J7 NXT and J2 (2017) drove volumes for the Korean vendor", said Anshika Jain, Research Analyst at Counterpoint. Xiaomi and OnePlus became the second and third fastest-growing smartphone brands with the growth of 134 percent and 112 percent in the first quarter. Not just Xiaomi, but other Chinese brands such as Tecno, Itel and Infinix also gained popularity in the budget segment of the Indian mobile phone industry. "India's inability to move quickly to a high-value market has only hurt them further", Rushabh Doshi said.

Lenovo's smartphone shipments were just short of a million units, falling by more than 60 percent year on year.

Tarun Pathak, Counterpoint's Associate Director, attributed the jump in feature phone segment to the demand for JioPhones, which continued through Q1 2018 giving the device a 36 per cent share in Q1 2018.

Interestingly, while Canalys said the Indian smartphone market grew 8 percent in the quarter, Counterpoint claimed the market experienced flat growth in the period.

The rise of Chinese players, that can take full advantage of their price competitiveness, is posing a serious challenge for Samsung's overseas smartphone business. Courtesy of the strong shipments of Reliance JioPhone in India, the feature phone segment doubled in Q1 2018. Vivo's market share was 5.8%, down from 6% in Q4 2017 while Oppo's market share also fell from 6% in Q4 2017 to 5.6% in the latest quarter. "This demand was catalysed by the introduction of a cheaper data plan, for the JioPhone in January: Rs 49 a month including unlimited voice calling and 1GB of data per month".

Other reports by Click Lancashire

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